The share price of PTT and GPSC continued to edge higher after the acquisition of 50% stake in GPSC’s Global Renewable Power Company Limited by PTT last week, coupled with a recovery in oil prices.
As of 10:50 local time in Thailand on Monday, the share price of PTT Public Company Limited (PTT) rose ฿1.75/share or 4.58% to ฿40.00/share with a trading value of 2,135 million baht. Meanwhile, the share price of Global Power Synergy Public Company Limited (GPSC) rose ฿2.75/share or 4.04% to ฿70.75/share with a trading value of 1,531 million baht.
Last week, PTT Public Company Limited (PTT) Board of Directors approved to acquire a 50% stake on GRP from GPSC to support PTT Groups strategic target of 8GW of renewable energy by 2030. The transaction, with a value of approximately Bt693mn, is expected to be completed by 1Q21.
After the acquisition, PTT and GPSC will each hold 50% stakes in GRP. PTT will also provide financial assistance in the form of a loan of around Bt834mn in proportion of the shareholding to GRP, which becomes PTT Group’s key player for solar and wind energy abroad.
Moreover, the oil prices also continued to edge higher last Friday, posing a third-week gain in response to the successful trials of the coronavirus vaccine by Pfizer, BioNTech, Moderna and Oxford University.
In the Asia morning session, WTI rose 0.19% to $42.50/bbl, while Brent Crude rose 0.42% to $45.15/bbl.