UAC Global Plc, a chemical trader and clean power operator, is steering away from its chemical business by selling a 70% share, worth 101.2 million baht, in its UAC Advance Polymer and Chemical Co to an Italian firm expanding its business into Asean.
The share sale, which started in October last year, follows UAC's diversification strategy into energy-related businesses to avoid the high expense of product development in the adhesive category, said Chatchapol Prasopchok, president and chief executive of UAC.
He said the deal suits Icap-Sira Chemicals and Polymer SPA, which is looking for a chemical production facility as it plans to sell a variety of products to members of the Regional Comprehensive Economic Partnership (RCEP) trade pact.
Icap-Sira is a producer of speciality chemicals for the textile, non-woven coating and pressure-sensitive adhesive sectors.
According to UAC, the Italian firm will receive 630,000 shares, valued at around 160 baht a share, and become the largest shareholder in UAC Advance Polymer and Chemical (UAPC), which has been active in the polymer industry in Asean since 1995.
UAC's shareholding dips to 30%.
"The deal is a great opportunity for Icap-Sira to increase its business potential, paving the way for the company's future growth in Asia-Pacific," Icap-Sira said in a statement.
Given its push for product R&D, the company wants to be able to offer its new customers the same quality products and services as those recognised by its European partners, said Icap-Sira.
The company aims to supply chemical-derived raw materials to the textile, construction, automotive, medical and food packaging sector members in RCEP.
Known as the world's biggest free trade deal, RCEP came into effect Jan 1 last year. Its members include Australia, Brunei, Cambodia, China, Indonesia, Japan, South Korea, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, Thailand and Vietnam.
UAC is growing its energy businesses, including rooftop solar panel installation and waste-to-energy development in Laos. In Thailand, the company joined the state's renewable scheme, overseen by the Energy Regulatory Commission, and ventured into onshore oil and gas exploration and production.
UAC's latest project is to sell electric vehicle chargers in Thailand.
