Share prices of PTT Group dropped on Tuesday after the report from Bloomberg that Thailand’s state-owned enterprise PTT Public Company Limited (SET: PTT) is looking for new partners for its petrochemical and refinery units.
As of 15:30 local time in Thailand, the share price of PTT fell 0.72% to THB34.25 per share. PTT Global Chemical dropped 2.86% to THB23.80, while Thai Oil was down 3.76% to THB51.25 and IRPC dipped 0.69% to THB1.44 per share.
The report cited a statement from PTT’s CEO Mr. Kongkrapan Intarajang said on Tuesday that the company is in talks with potential investors to sell a portion of stakes in PTT Global Chemical, Thai Oil and IRPC, but will maintain majority stakes in those units.
According to the CEO, new partners will help improve operations of said units, which are facing high competition and tough market conditions. Moreover, Mr. Kongkrapan also mentioned that the company is looking to divest unprofitable businesses and units in an effort to boost profits.
Despite the decline in share prices due to panic sales after the news broke out, the divestment could be seen as a strategic move to strengthen business operations and network, especially for the chemical business that has seen a huge impact from the Chinese market in price competition.
