Takeover to slightly increase PTTGC's leverage: Fitch
PTT Global Chemical Plc (PTTGC)'s plan to acquire a 51 per cent stake of Perstorp Holding France SAS has a limited impact on its financial position and credit metrics, as the acquisition should only marginally increase the financial leverage, according t
PTTGC announced the plan on Monday to invest Bt4.8 billion for the stake.
Fitch noted that measured by adjusted net debt/operating EBITDAR, the amount should slightly increase the leverage. Fitch still expects PTTGC's credit metrics to improve in 2012 despite this acquisition.
It added that this acquisition is in line with the company's long-term strategy to expand into downstream and special products, to increase its product coverage and geographical diversification. PTTGC is likely to continue pursuing M&A opportunities in the medium term.
"Fitch however does not anticipate any further acquisitions in 2012 as the management is expected to focus on integration efforts following the consummation of the merger which created PTTGC," it said.
PTTGC is born from the merger of PTT Aromatics and Refining Plc and PTT Chemical Plc.
