PTT Restructures Infrastructure Arm with 18 Billion Baht Asset Transfer to Thai Oil

Bangkok: PTT is embarking on a significant restructuring of its infrastructure division, with a strategic investment of over 40 billion baht to create PTT Tank. Thai Oil has announced that it will receive more than 18 billion baht in cash through this move, aimed at fortifying its financial standing and reducing debt, while continuing to utilize existing assets for usual business operations. According to Thai News Agency, Mr. Bandit Thammaprajamjit, CEO and President of Thai Oil Public Company Limited (TOP), disclosed that the company's Board of Directors approved an asset monetization initiative on September 25, 2025. This involves PTT Tank purchasing a 49% stake in a TOP subsidiary. The investment includes a 21-year leasehold on infrastructure assets located in Sriracha District, Chonburi Province, such as crude oil storage tanks, a single buoy mooring (SBM), truck fuel stations, and certain land parcels. TOP will lease these assets back for refinery operations, providing the company with a cash influx to strengthen its financial position and improve its capital structure and debt-to-equity ratio. In alignment with its strategy to enhance its financial health, the company has secured cash flow from long-term property leases, ensuring uninterrupted management and use of these assets for ongoing operations. Mr. Bandit emphasized that the transaction's impact on all stakeholders was thoroughly considered, prioritizing the company's and shareholders' benefits. To maintain transparency, the board appointed Capital Advantage Co., Ltd. as an independent financial advisor to evaluate the transaction's suitability and prepare a report for shareholder review. An extraordinary general meeting of shareholders, to be held electronically, is scheduled for December 9, 2025, with the list of eligible shareholders to be finalized on October 9. PTT has announced the implementation of an Asset Monetization (A1) strategy to optimize its assets across the Group. This plan involves restructuring the infrastructure segment by app ointing PTT Tank Terminal Co., Ltd. (PTT Tank) as the Infrastructure Flagship. PTT will establish PTT Tank as a wholly-owned subsidiary to execute asset purchase and leaseback transactions, along with asset purchase and service transactions from PTT Global Chemical Public Company Limited (PTTGC). A new joint venture will be formed, with PTT Tank and TOP holding 49.0% and 51.0%, respectively, to lease assets from TOP for 21 years and sublease them for operational purposes. PTT Tank will also acquire approximately 35.43% of common shares in Thai Tank Terminal Co., Ltd. from PTTGC, enhancing the Group's capabilities in liquid cargo handling, storage, and transportation services. The project's gradual completion is anticipated between December 2025 and the first quarter of 2026. The budget encompasses PTT's acquisition of assets, customer service rights, land use rights, and the transfer of key licenses from PTTGC, amounting to no more than 4.84 billion baht. A new joint venture, PTT Tank, has been established t o lease assets from TOP, totaling up to 37.402 billion baht. Additionally, PTT has acquired approximately 35.43% of common shares in Thai Tank Terminal from PTTGC for no more than 4.403 billion baht. PTT Tank has agreed to pay further compensation of up to 604 million baht if PTTGC meets specific conditions. Mr. Kongkrapan Intarajang, President and CEO of PTT Public Company Limited, stated that the Asset Monetization strategy is designed to maximize PTT Group's asset utilization while providing PTTGC and TOP with additional cash and liquidity.