Bangchak Corporation Plc Eyes Enhanced Operational Flexibility through Esso Shares Tender Offer
Bangchak Corporation Plc (BCP), a prominent energy conglomerate, has set its sights on bolstering operational flexibility through a strategic business restructuring initiative that involves acquiring all remaining shares in Esso Thailand. Following the business deal that led to the acquisition of Esso Thailand, which was rebranded as Bangchak Sriracha Plc (BSRC), BCP is now embarking on a tender offer to acquire an 18.3% share held by minority shareholders. This move is part of a broader plan to optimize the company’s operational framework and streamline its business functions to capitalize on emerging opportunities effectively.
According to Chaiwat Kovavisarach, the Chief Executive of Bangchak Group and President of BCP, the company’s board of directors has greenlit the acquisition plan, which involves a share swap mechanism with newly issued ordinary shares of BCP. The exchange ratio for the transaction has been set at one newly issued ordinary share of BCP per 6.50 BSRC shares. This strategic move is expected to culminate in the delisting of BSRC’s shares from the Stock Exchange of Thailand (SET) by the end of the year, marking a significant milestone in BCP’s evolution as an industry powerhouse.
In an interview, Mr. Chaiwat highlighted that the restructuring plan is designed to fortify Bangchak Group’s competitive edge and operational efficiency, positioning the company to navigate the dynamic energy landscape with agility and resilience. By consolidating the ownership structure and eliminating redundant processes, BCP aims to unlock new growth avenues and drive sustained financial performance in the long run.
The tender offer not only presents an attractive proposition for BSRC’s minority shareholders but also paves the way for them to become part of BCP’s larger corporate ecosystem, characterized by a robust financial foundation and an impressive earnings before interest, tax, depreciation, and amortization (Ebitda) of approximately 40 billion baht. Through their BCP holdings, BSRC shareholders will retain indirect ownership in BSRC, while benefiting from enhanced liquidity and market capitalization, thereby creating a win-win scenario for all parties involved.
Looking ahead, Bangchak Group is poised for exponential growth under its visionary “Bangchak 100X” strategy, which aims to achieve an Ebitda of 100 billion baht by 2030. This ambitious roadmap underscores the company’s commitment to driving sustainable value creation and fostering enduring success in an increasingly competitive industry landscape.
As the restructuring plan for BSRC unfolds, with the impending delisting from the SET on the horizon, there are several key milestones on the horizon. These include securing approval at the annual BSRC general meeting of shareholders slated for April 9 and the subsequent annual BCP general meeting of shareholders on April 11. These pivotal events will shape the trajectory of BCP’s transformation journey and set the stage for a new chapter of growth and innovation in the energy sector.
