BOC Group acquires stake in Thai LPG trader UGP

The UK-based worldwide industrial gas concern BOC Group has acquired a 79% stake in Thailand's Unique Gas & Petrochemicals PLC (UGP) for $44 million as part of its entry to the kingdom's LPG market.

May 21, 2002

By an OGJ correspondent

BANGKOK, May 20 -- The UK-based worldwide industrial gas concern BOC Group has acquired a 79% stake in Thailand's Unique Gas & Petrochemicals PLC (UGP) for $44 million as part of its strategic entry to the kingdom's LPG market.

BOC, through local subsidiary Thai Industrial Gas PLC (TIG), acquired 8.36 million shares in UGP, one of Thailand's major LPG traders, at 237 baht/share. The acquisition will trigger a mandatory tender offer requirement in which TIG will have to offer the same price to the remaining 21% shareholders of UGP.

On that basis, the total cost of acquisition of UGP's business would be $45 million. The acquisition will be funded through borrowings. Chris Browning, TIG managing director, said that, with UGP in its organization, the firm will add ammonia and LPG to its growing portfolio of products in Thailand.