SCC signs agreement to hold 100% stake in Long Son Petrochemicals Project


The Siam Cement Public Company Limited (or “SCC”) hereby announces that Vina SCG Chemicals Co., Ltd. (or “VSCG”), SCC’s wholly owned subsidiary in the chemicals business, has signed an agreement with Vietnam Oil and Gas Group (or “PetroVietnam”) to acquire a 29% equity stake in Long Son Petrochemicals Co. LTD (or “LSP”) at the price of approximately 2,900 million Baht (2,052 billion VND), whereby the transaction is expected to be completed by the end of June 2018.

Upon completion of the transaction, SCC’s indirect stake in LSP will increase from 71% to 100%. This 100% stake will be held by Vina SCG Chemicals Co., Ltd at 82% and Thai Plastic and Chemicals Public Company Limited will maintain its current stake at 18%. The equity portion (40% of total project cost) of SCC in this US$ 5.4 billion project or approximately 173,000 million Baht (at an exchange rate of around 32 THB/USD) will then increase from 53,392 million Baht as earlier informed to 70,000 million Baht caused by the increasing of equity stake holding and prevailing exchange rate.

The commencement of Engineering, Procurement and Construction (EPC) activities for this project will be in the third quarter of 2018, with the targeted commercial operation by the first half of 2023. The Vietnamese government continues to support the project by maintaining all granted incentives to LSP. This investment is considered an asset acquisition transaction. The size of this transaction is 0.51% of total assets stated in SCC consolidated financial statements as at March 31, 2018, and when combined with those in the past six months prior to the date of this transaction, the total size is 1.88%. Thus, the disclosure of this transaction is not required pursuant to disclosure rule for the acquisition and disposition of assets. This transaction is not a connected transaction.