The amalgamation will result in a new company (“NewCo”) which can enhance the potential, add value and reduce risks from differences in business cycles of refining and petrochemical businesses.  After the amalgamation, the NewCo will become Thailand’s largest integrated refinery, thereby furthering reinforce global competitiveness of PTT Group’s in both businesses.

        Mr. Prasert Bunsumpun, President of PTT Public Company Limited (PTT) revealed that on July 20, 2007, the Boards of Directors of PTT, The Aromatics (Thailand) Public Company Limited (ATC), and Rayong Refinery Public Company Limited (RRC) passed the resolutions on the approval of the amalgamation between ATC and RRC to be a NewCO under the Public Company ACT B.E. 2535.  The NewCo resulting from the amalgamation of ATC and RRC will have a strong business position, able to leverage its advantage in terms of cost and added value in refining business with linkage to aromatics and other downstream products.  The NewCo will operate PTT Group’s world-class integrated refinery and aromatics petrochemical business, as well as downstream product chain.

        Mr. Prasert added that after the amalgamation and the completion of on-going capacity expansions of both companies, the NewCo will be Thailand’s largest integrated refinery in terms of total production capacity, with 280,000-barrel-per-day refining capacity and 2.2-million-ton-per-year aromatics production.  In addition, the amalgamation will create more diversification of incomes from both petrochemical and refining businesses, strengthen both operational and financial positions and reduce risks from volatility of petrochemical and refining businesses. 

        The allocation of NewCo’s shares to shareholders of ATC and RRC will be at the following proportions:

• 1 existing share of ATC  to 1.524428135 shares of NewCo
• 1 existing share of RRC  to 0.516755300 shares of NewCo