Sunday, June 15, 2008

Thailand's largest coal supplier acquires 78.4% stake in the BVI company

Banpu Public Company Limited has acquired the 78.4% stake in the British Virgin Islands-registered Asian American Coal (AACI), with the purpose to consolidate its positions in the Chinese coal sector and establish China as company's third main geographic focus. The company made an investment in the amount of US$240 mln through its wholly owned subsidiary, BP Overseas Development (BPOD), which became the shareholder of the BVI company in 2003.

Banpu executives said in their statement to the Stock Exchange of Thailand that the aim of the acquisition is at giving the company board and management control of the BVI-based AACI, thereby determining company's future strategy. Under the terms of the acquisition, 32 mln shares were purchased from other shareholders, which Banpu will need to finance from its cash flow and bank loans.

The BVI-registered AACI is engaged in investment and development of coal-mining businesses in China. It has a 56% stake in Shanxi Asian American Daning Energy (SAADEC) and 45% in Shanxi Gaohe Energy (SGEC). The partners in both of these joint ventures are large Chinese coal-mining groups.