Ratch pays Bt2.7bn for 15.53% stake in Bangkok Aviation Fuel Service
Ratch Group today said it had completed the purchase of a 15.53 per cent stake (98,983,125 shares) in Bangkok Aviation Fuel Service (BAFS) from Thai Airways International in a deal worth Bt2.7 billion.
The announcement comes exactly a month after Ratch joined an e-auction of BAFS shares on December 19. The BAFS share-purchase agreement with Thai Airways International (THAI) was made later on December 29, 2020.
THAI transferred the BAFS shares today (January 19).
Ratch CEO Kijja Sripatthangkura said the company is committed to long-term investment in BAFS and will support collaboration to accomplish future growth targets of both parties.
Ratch Group, Thailand's largest private power producer by capacity, plans to expand investment in infrastructure and energy-related businesses as well as seek strong alliances.
While the investment in BAFS corresponds with the company's strategic plan, the deal will also strengthen its business via stable revenues from dividend income gained on its investment.
"The transaction was funded by internal company capital. The bidding offer was fair for the growth potential of BAFS. [Ratch], working closely with a financial adviser, cautiously studied prospects of the aviation business, aviation fuel service, and BAFS's operating performance and business plan and goals," Kijja said.
Ratch sees good prospects from a synergy between both companies on renewable-energy power plants, digital technology, and businesses related to fuels and energy.
