Thai energy giant PTT seeks to sell entire EV venture stake to Hon Hai to raise fresh funds

[BANGKOK] Thai oil and gas giant PTT is looking to offload its entire stake in an electric-vehicle joint venture to Hon Hai Precision Industry to raise fresh funds, according to a top executive.

The two firms established the partnership to build an EV plant in 2021 in a deal worth US$1 billion. PTT first held 60 per cent of the venture before cutting its stake to 40 per cent.

“The EV plant hasn’t been built yet and may not be built for a few years,” chief executive officer Kongkrapan Intarajang said in a press briefing in Bangkok on Wednesday (Nov 19). The higher stake should help increase Hon Hai’s flexibility in making decisions on the plant, he said.

The plan comes as the Thai firm steps up efforts to restructure its units and improve liquidity amid weak petrochemical and refining businesses, driven by oversupply and soft prices. It announced asset restructuring in two major units, involving at least 47 billion baht (S$1.9 billion) of transactions, in September.

PTT is also considering divesting some stake in a battery venture with Chinese battery maker Gotion High-Tech, with plans to sell the stake back to Gotion. It currently owns a 51 per cent stake of the venture, while Gotion controls 49 per cent.

It expects to raise 100 billion baht in cash from its asset monetisation programme in 2025-2026, bolstered by the latest divestment plans, Kongkrapan said.

SEE ALSO

As Thailand’s EV adoption grows, its automotive market wrestles with aftershocks 

Thailand car production drops in July, local sales up

Thailand adjusts EV policy to ease production requirements, target exports

China’s intense EV rivalry tests Thailand’s local production goals

More

DECODING ASIA

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

PTT reported signs of improvement in the petrochemical and refining operations in the third quarter, helping lift net income 21 per cent from a year earlier. BLOOMBERG