BCPG Clarifies Transparent Investment in Petroleum Storage and Port Terminal in Phetchaburi Province
BCPG clarified its petroleum storage and port terminal investment in Phetchaburi as a standard business transaction structured to isolate acquired assets from past liabilities while generating approximately 900 million baht in annual revenu
BCPG has clarified its investment in petroleum storage facilities and port terminal in Phetchaburi province as a standard business transaction, with buyers and sellers operating independently with no direct or indirect connections.
In response to media reports regarding BCPG Public Company Limited's investment in the petroleum storage and port terminal project in Phetchaburi province, the company provides the following clarification:
The company invested in the project through a business acquisition structure, requiring the seller to establish a new company called Asia Link Terminal Limited (ALT) and transfer only the assets, rights, and contracts related to the petroleum storage and port terminal business to ALT. This transaction structure aims to isolate the acquired business from only those assets and rights directly related to the operation, while separating any liabilities or risks from the seller's past operations. This ensures that post-investment valuation and business performance reflect the true potential of the business without being mixed with historical burdens.
Following the transfer, BCPG Energy Logistics Limited, a subsidiary company, acquired all shares of ALT, which contains only the assets, rights, and contracts related to the business.
The investment valuation follows standard business investment principles, based on the company's ability to generate cash flows from serviceable assets and long-term warehouse lease contracts that provide future revenue. The investment is therefore evaluated based on cash flows and revenue the business can generate, not the physical value of assets. Currently, ALT generates approximately 900 million baht annually, demonstrating its capability to operate continuously and generate cash flows.
Under accounting principles, the company completed a fair value assessment according to accounting standards in the second quarter of 2567, within the required 12-month period from transaction completion. This fair value assessment is separate from determining the investment valuation.
This investment is part of a strategy to develop energy infrastructure business to generate long-term revenue. The petroleum storage and port terminal business generates cash flows and serves as revenue support during the period when Thailand's solar energy project concessions expire.
This transaction is a standard business transaction with both buyer and seller operating independently with no direct or indirect relationships. The company remains committed to conducting business under good corporate governance principles, emphasizing transparency, auditability, and strict compliance with applicable laws and regulations.
