Energy company aims to find new partners
PUBLISHED : 20 Nov 2024 at 05:36
National oil and gas conglomerate PTT Plc is likely to spin off its life science subsidiary Innobic (Asia), enabling the firm to be more financially independent as it seeks to make significant changes to its diversified businesses.
PTT is seeking business partners to help with the separation plan.
“We expect to come up with a list of new partners by early next year. The spinoff will enable Innobic to stand on its own feet,” said Kongkrapan Intarajang, chief executive and president of PTT. “PTT will be only an investor in Innobic.”
The new partners, with expertise in new technologies other than oil and gas business experience, will strengthen the development of Innobic’s businesses, said Mr Kongkrapan.
Innobic was set up in 2020 by PTT to help the energy company move into the pharmaceutical, nutrition and medical device fields.
Innobic aims to make generic drugs for non-communicable diseases. The company also acquired shares in Lotus Pharmaceutical Co, a generic medicine company listed on the Taiwan Stock Exchange.
A new business direction for Innobic is part of PTT’s business restructuring plan. PTT is also making changes to its electric vehicle (EV)-related businesses.
In the long term, PTT will maintain only EV charging services, operated by its oil trading arm PTT Oil and Retail Business, said Mr Kongkrapan.
PTT, through its wholly-owned Arun Plus, co-established a joint venture with Taiwan-based Hon Hai Precision Industry Co, a multinational electronics manufacturer known globally as Foxconn, to develop an EV assembly plant in Thailand.
PTT is planning to have Hon Hai play a key role in operating the EV factory once its construction is completed.
Mr Kongkrapan said the company wants to focus more on its core businesses, notably oil and gas, as global business competition intensifies. PTT wants new partners to further strengthen its petroleum business.
“Returning to original businesses we specialise in is important for business growth. Adequate profit is needed for shareholders and investment in less carbon-intensive businesses,” he said.
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