BAT-3K restructures to transfer plastics, battery firms
SET-listed Thai Storage Battery (BAT-3K) will spend 700 million baht for the entire business transfer of its wholly owned subsidiaries to pave the way for the company’s business restructuring.
Yesterday BAT-3K submitted a letter to the Stock Exchange of Thailand to inform that the company’s board meeting approved acquiring the entire business of Power Plas Co (PP) and 3K Products Co (3KP).
PP is a producer and distributor of plastic granules while 3KP is a distributor of vehicle batteries.
Toshinori Osumi, chief executive of BAT-3K, said the company will purchase the entire business of both firms — paying 100 million baht for PP and 600 million for 3KP. BAT-3K will acquire all assets, liabilities, rights, duties, and obligations of PP and 3KP.
“Transactions transferring the entirety of both businesses should be completed by April 1, 2019,” he said.
As a result of the PP transaction, BAT-3K will hold three Board of Investment (BoI) certificates, which will have to be transferred. BAT-3K will accept the certificates at a specified time stipulated by the BoI, said Mr Osumi.
Last July, BAT-3K announced Siam Magi, a subsidiary of Japan’s Hitachi Chemical, purchased the company’s 8.78 million shares at a price of 275 baht each from the Korphaibool family, a founder of BAT-3K. That gave Hitachi Chemical a 43.9% stake through Siam Magi in a deal worth 2.41 billion baht before Siam Magi launched a tender offer in August for the remaining shares to comply with securities rules.
At present, Hitachi Chemical and Siam Magi hold 35.85% and 51%, respectively, in BAT-3K. PP and 3KP are also owned by the Korphaibool family.
Mr Osumi said BAT-3K aims to change the name to Hitachi Chemical Storage Battery Thailand Plc.
“The acquisitions and company name change are on the agenda for an extraordinary general meeting of shareholders on Nov 1,” he said.
BAT-3K operates a plant at Bangpoo Industrial Estate in Samut Prakan, making up to 6 million batteries a year. Hitachi Chemical runs an automotive battery plant in Chachoengsao with an annual capacity of 1.2 million units.
Some 55% of BAT-3K’s revenue is from exports and it controls 23% of the market for replacement batteries in Thailand.
BAT-3K shares closed unchanged with no trade yesterday on the SET at 210 baht.