Thailand-based polyester and yarn manufacturer Indorama Ventures will be acquiring a 94.91% stake in polyethylene terephthalate (PET) polymers maker Bangkok Polyester for an undisclosed amount.
A producer of PET polymers in Rayong, Thailand, Bangkok Polyester has an annual capacity of 105,000 tons.
Established in 1994, Bangkok Polyester specializes in producing PET resins for packaging of food, drinks, cosmetics and medicine sectors.
Indorama, that is considered to be one of the largest PET producer globally and also the largest polyester fibre producer in Thailand, will be buying the company from majority shareholder Bangkok Cable Company.
According to ICIS, Indorama's PET segment accounts for half of the company's overall production and had a capacity of 3.1m tonnes per year, at the end of 2014.
The acquisition is expected to be completed in the first quarter of 2015 and will increase Indorama's capacity in Turkey to 382,000 tonnes every year.
Recently, Indorama had also acquired PET resin producer Artenius Turkpet PET plant which had a capacity of 130,000 tonnes per year.
The company said in a statement: "The value of the acquisition, calculated in accordance with the regulations of the Capital Market Supervisory Board and the Stock Exchange of Thailand, is less than 15% and the total size of transactions in the past 6 months is also less than 15%.
"Therefore, this transaction is not subject to disclose as per the regulation concerning the acquisition and disposal of assets of listed companies as prescribed by the regulation of the Stock Exchange of Thailand Re: Disclosure of Information and Other Acts of Listed Companies Concerning the Acquisition and Disposition of Assets, 2004 (as amended)."
