Thailand’s PTT Pcl to acquire Australia’s Straits Resources for $546 million

PTT Public Company Limited (PTT Pcl), Thailand state-owned listed oil and gas company, today said that its mining unit has agreed to acquire Australia's diversified resources company Straits Resources Ltd for A$544.1 million ($546 million).

Under the deal, PTT Pcl's wholly-owned subsidiary PTT Mining Limited (PTTML) will pay Straits Resources shareholders A$1.72 per share or about A$544.1 million as part of the Thai company's long-term strategy to raise its exposure to high-quality coal assets.

The acquisition would follow the demerger of the Australian mining firm's metal assets from its coal assets, PTT Pcl said in a statement.

Following the demerger, PTTML will obtain Straits Resources coal assets in Brunei, Indonesia and Madagascar.

Bangkok-based PTT Pcl, formerly known as the Petroleum Authority of Thailand had acquired 60 per cent interest in the coal assets of Straits Resources in March 2009 through a joint venture.

West Perth, Australia-based Straits Resources is a diversified resources company having interests in coal, copper, silver, and gold deposits exploration and production.

Straits Resources controls and operates the Tritton Copper Mines in New South Wales, the Mt Muro gold mine and Sebuku and Jembayan coal mines in Indonesia.

It also has a portfolio of mining investments, development projects and exploration ground throughout Australia, Brunei and Indonesia.

PTT Pcl is one of the largest corporations in Thailand and also the only company from the country to feature in the Fortune Global 500 companies.