BCPG Public Company Limited (SET: BCPG) has announced an acquisition of all shares in Asia Link Terminal Company Limited (Asia Link Terminal) from Pan Asia Storage & Terminal Company Limited (Asia Link Terminal’s parent company) at a total value of THB 9,000 million.
The company views that the Asia Link Terminal operates an oil terminal and seaport business in Phetchaburi Province, which is a public utility infrastructure platform supporting the energy sector and can generate recurring income, in accordance with the company’s business plan and investment direction. Furthermore, the acquired infrastructure can be extended to support other future business opportunities.
Oil terminal business
The oil terminal business is located in Phetchaburi province, covering approximately 150 rai of land. At present, there are (1) 16 fuel storage tanks capable of holding more than 480 million liters of oil, (2) 3 16-inch diameter oil pipelines, and (3) 16 onshore fuel distribution ports. In addition, a portion of the project location is registered as a Free Trade Zone. Currently, Pan Asia Storage & Terminal Company Limited is in the process of expanding and constructing additional oil terminals and pipelines, by adding 4 oil tanks with a total capacity of more than 230 million liters and 2 oil pipelines with a diameter of 20 inches.
Seaport for oil transport business
The seaport for oil transport business is located in Phetchaburi province. Currently, the port can accommodate up to 30,000 gross-ton ship and can accommodate up to 2 ships. Pan Asia Storage & Terminal Company Limited is in the process of expanding the seaport project. After the seaport expansion project is completed, it will be able to accommodate ships weighing up to 120,000 gross tons and up to 5 ships.
BCPG stated that on 30 December 2022,it had entered into the share sale and purchase agreement to purchase all shares in the Asia Link Terminal. BCPG anticipated that the completion of this transaction could occur approximately in March 2023.
BCPG noted that the source of funds for this transaction will come from its cash flows.
Asia Link Terminal Company Limited is a newly established company that has never operated any business and has no assets or employees. Asia Link Terminal Company Limited will start operating the oil terminal business and seaport for oil transport business upon receiving the business transfer from Pan Asia Storage & Terminal.
