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Bangkok Post
Bangkok Post
Business

BCPG to expand via Asia Link acquisition

Mr Niwat looks forward to new business opportunities, following BCPG's investment in Asia Link Terminal Co, a provider of oil storage services.

BCPG Plc, the clean power generation arm of energy conglomerate Bangchak Corporation Plc, is acquiring the entire shareholding in Asia Link Terminal Co, a provider of oil storage services, in a move aimed at expanding its businesses related to oil terminal and seaport projects.

It has been estimated that the value of the share purchase would not exceed 9 billion baht.

The new asset acquisition will pave the way for new business opportunities in the future, said Niwat Adirek, chief executive of BCPG.

"The businesses of Asia Link include long-term contracts on oil storage, which promise fixed monthly revenue, so the new asset has the potential to grow," he said.

Asia Link is a subsidiary of Pan Asia Storage & Terminal Co, a logistics service provider that runs businesses across Asia.

Asia Link operates oil terminal and seaport businesses in Phetchaburi province. It provides infrastructure supporting the energy sector, which can generate recurring revenue in accordance with BCPG's business plans and investment direction.

According to a letter submitted to the Stock Exchange of Thailand yesterday, BCPG is in the process of buying 40 million shares, with a par value of 100 baht a share, from Asia Link.

BCPG and Asia Link prepared a share sale and purchase agreement on Dec 30 last year.

Mr Niwat expects the transaction to be completed by around March of this year.

It is believed that BCPG would spend funds from its cash on hand for the new asset acquisition.

The share purchase deal came a month after Bangchak Corporation announced it had fully entered into the energy logistics business by supplying liquefied natural gas (LNG) to factories located outside the service area of onshore gas pipeline networks.

Bangchak has already sold up to 10,000 tonnes of LNG to entrepreneurs after only starting its operations about two years ago, Chaiwat Kovavisarach, president and chief executive of Bangchak Corporation, was quoted as saying.

His company runs the business through BTSG Co, a joint venture between Bangchak Corporation and Thai Special Gas, a local industrial gas supplier.

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