Thailand’s listed holding company Thoresen Thai Agencies (TTA) expects to close an acquisition deal worth 30-40 billion baht ($937 billion – $1.25 billion) this year. The deal will help the company in inorganic business expansion and long-term growth for its business in Thailand, say company officials
However, the company did not disclose other details about the acquisition.
According to the TTA’s president and CEO Chalermchai Mahagitsiri, the move will help in supporting the existing businesses and give an attractive return to investors.
“We are looking for the opportunities for the acquisition domestically and internationally as we have the cashflow of more than 10 billion baht and we can get more loans because our debt-to-equity is only 0.34 times,” he said.
The company intends to tap opportunities arising out of the the new policy of Thailand’s Energy Ministry, which has declared its intention to increase the proportion of renewable energy consumption to 25 per cent in 10-20 years.
TTA has already negotiated with a few operators for a joint venture in solar cell, wind energy, and biomass energy business. Nevertheless, it has to wait for licenses from Energy Ministry.
Mahagitsirii said that the company would be able to generate revenue much higher than the 6.62 billion baht registered in 2014; and maintain the net profit at 154.73 million baht, the same level as the last year.
In the first quarter, TTA recorded a loss because it was a low season for shipping business and the freight was on downward trend.
It is also looking for a strategic partner to invest in Unique Mining Services (UMS), a coal mining firm under TTA’s umbrella. He said that the strategic partner must be able to create the sustainable revenue and profit growths for UMS.
“We are talking to many companies, but are not in a hurry to close the deal within this year. We keep looking for the most suitable one,” he added.