Washington Times: Shell to sell stake in Thai refinery (ShellNews.net)

Posted 23 August 04

Bangkok, Thailand, Aug. 22 (UPI) -- Shell International Holdings Ltd sealed an agreement Sunday to sell its 64 percent stake in Thailand's Rayong Refinery Co to state giant PTT Plc for $5 million.

PTT must also inject up to $250 million to recapitalize the refinery as part of its $1.33-billion debt restructuring, the Bangkok Post reported Sunday.

PTT already holds the other 36 percent of the refinery's paid-up capital. Under the agreement, it will buy 242.67 million shares of RRC and supply petroleum products to Shell under a 10-year contract.

PTT president Prasert Bunsumpun said the company's goal as the sole shareholder of RRC was to support its debt and capital restructuring in order to strengthen the refinery's financial status. He said RRC's performance and enterprise value were expected to improve given the increase in domestic and regional demand for petroleum products.

http://washingtontimes.com/upi-breaking/20040822-094033-7030r.htm