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CITIC Resources Holdings Ltd has scrapped talks to invest in Thai Petrochemical Industry Pcl after a court ruling that cleared the way for a deal was delayed.
CITIC Resources notified Thai Petrochemical shareholders on July 1 it was withdrawing from talks, it said in a statement issued yesterday.
Thailand's Central Bankruptcy Court on Monday ruled CITIC and Thai Petrochemical founder Prachai Leophairatana could review company documents as part of a plan to jointly buy the company.
Prachai and minority shareholders, who own about 25 per cent of Thai Petrochemical, joined with CITIC to try and override an agreement the finance ministry forged to sell Thai Petrochemical at a discount to State-controlled companies led by PTT Pcl, Thailand's biggest energy group. The court has set a November deadline to complete the company's US$2.7 billion debt rehabilitation and share sale.
"The CITIC bid created confusion in the market and resulted in share-price fluctuations," said Aekpittaya Iemkongaek, an investment strategist at BFIT Securities Co in Bangkok. "If it becomes clear that Prachai has no other option and the PTT transaction is going to move ahead, we should see gains in both PTT and Thai Petrochemical's shares."
(China Daily July 6, 2005)
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