Energy conglomerate Bangchak Corporation Plc (BCP) expects its buyout of Esso (Thailand) Plc for 55.5 billion baht to pave the way for higher revenue, gaining a larger market share in the oil retail business and lower costs, though the new asset acquisition will increase its debt.
Chaiwat Kovavisarach, group chief executive and president of BCP, views the purchase price as “reasonable”, though its debt-to-equity ratio will rise to 1.7 times, up from 0.6 times.
BCP plans to pay for the shares with a secured bank loan and cash on hand.
He is aware of the automotive industry’s shift towards battery-powered cars, but believes demand for oil will remain high for decades, so the company decided to…
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