Asia Plus Advisory confirms fair pricing on jetty and tank farm divestment as PTTGC pursues Asset Light strategy.
PTT Global Chemical (PTTGC) is selling its jetty and tank farm storage infrastructure for THB 4.84 billion to PTT Tank New Subsidiary while simultaneously leasing back portions to maintain operations—a move the Independent Financial Advisor (IFA) has deemed fair and strategically sound.
PTTGC is divesting critical infrastructure assets including jetty facilities, 12 chemical storage tanks, truck loading systems, and related equipment. The structure ensures zero operational disruption while transferring infrastructure ownership and management to a specialized PTT Group entity.
Asia Plus Advisory, acting as IFA, assessed the assets using multiple valuation methods and concluded the THB 4.84 billion price is appropriate:
- Book Value: THB 2.49 billion (insufficient—ignores future value)
- Replacement Cost: THB 3.89 billion (limited—reflects cost, not value)
- Market Comparable: THB 2.69-4.65 billion (not appropriate—poor comparability)
- Discounted Cash Flow: THB 4.40-5.27 billion (most appropriate method)
The transaction price falls comfortably within the DCF valuation range, which the IFA considers most suitable because it reflects the assets’ ability to generate future cash flows under existing contracts.
Asia Plus Advisory concludes shareholders should approve the transaction based on:
- Fair valuation within assessed range
- Reasonable commercial terms at market rates
- Strategic alignment with Asset Light transformation
- Manageable execution risks with appropriate safeguards
The IFA emphasizes this represents a calculated trade-off: immediate financial strengthening and strategic focus versus reduced asset control and perpetual cost obligations. Shareholders will vote on November 18, 2025.
