Price seems to vary a bit...but story consistent.Thailand’s PTT...

Price seems to vary a bit...but story consistent.

Thailand’s PTT Offers to Buy Controlling Stake in Straits Asia
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By Jason Scott

March 23 (Bloomberg) -- PTT Pcl, Thailand’s biggest energy company, agreed to buy 60 percent of Straits Resources Ltd.’s controlling stake in Straits Asia Resources Ltd. for as much as $335 million, to add coal mines in Indonesia.

PTT International Co. will pay Straits Resources $220 million for the stake and a further amount of as much as $115 million, depending on “reserve upgrades” at a mine in Indonesia, the offer documents said. Because the deal involves a change of control in Straits Asia, the Bangkok-based company also made a takeover offer for the Singapore-based company.

Straits Asia supplies coal to Japan, Taiwan and South Korea from mines in Indonesia. Perth-based Straits Resources, which owns a 47 percent stake in Straits Asia, said Dec. 4 it received approaches from potential buyers for its stake.

“Coal represents an important long term diversification strategy and growth opportunity for PTT,” PTT said in today’s statement. “PTT will also benefit from the coal expertise of the management team who has been responsible for Straits Resources’s success and growth in coal.”

PTT offered 80.7 Singapore cents a share, 4.5 percent less that their last traded price for Straits Asia as part of the transaction, valuing the company at S$882 million ($583 million).

Straits Resources shares were halted from trade in Sydney.

To contact the reporters on this story: Jason Scott in Perth at [email protected];

Last Updated: March 22, 2009 20:28 EDT