PTT Exploration Seeks as Much as $3.1 Billion in Share Sale

PTT Exploration & Production Pcl (PTTEP), Thailand’s biggest publicly traded oil and gas explorer, will sell shares in a range of 135 baht to 145 baht each to raise about $3.1 billion in the nation’s biggest equity offering.

The range represents a discount of 6.1 percent to 12.6 percent to the closing price of PTTEP’s shares on Nov. 28, according to a term sheet obtained by Bloomberg News. The final price will be announced tomorrow, the terms show.

The share sale comes as state-owned oil and gas companies in Asia try to secure more reserves. PTTEP is seeking funds to help finance its 1.2 billion pound ($1.9 billion) acquisition of Cove Energy Pcl after beating Royal Dutch Shell Plc (RDSA) in the contest for control of the East Africa-focused explorer.

Cnooc Ltd. (883), China’s largest offshore oil and gas explorer, agreed in July to buy Calgary-based Nexen Inc. (NXY) in a deal that’s awaiting Canadian approval. Petroliam Nasional Bhd., the Malaysian producer known as Petronas, offered in June to acquire Progress Energy Resources Corp. (PRQ) While that agreement was rejected by Canada, Petronas was allowed to appeal.

PTTEP will sell 650 million shares to parent PTT Pcl (PTT) and other existing investors, it said when announcing the rights offer in July. PTT will subscribe to the shares at the top end of the range, according to the terms.

Photographer: Dario Pignatelli/Bloomberg

PTT Exploration & Production Pcl's (PTTEP) U-Thong petroleum field in Amphur Muang, Suphanburi province, Thailand. Close

PTT Exploration & Production Pcl's (PTTEP) U-Thong petroleum field in Amphur Muang,... Read More

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Photographer: Dario Pignatelli/Bloomberg

PTT Exploration & Production Pcl's (PTTEP) U-Thong petroleum field in Amphur Muang, Suphanburi province, Thailand.

Shares Decline

Shares of PTTEP fell for the fourth day in Bangkok, dropping 0.7 percent to 153.5 baht at the midday break and heading for the lowest close since Sept. 13.

The stock sale will also help PTTEP meet a target to increase daily production of oil and natural gas to 900,000 barrels of oil equivalent by 2020, Chief Executive Officer Tevin Vongvanich said in July. PTTEP plans to spend about $20 billion by 2016 to raise output.

The sale would be Thailand’s biggest ever equity offering, topping Siam Commercial Bank Pcl (SCB)’s 65 billion baht ($2.1 billion) share sale in 1999, according to data compiled by Bloomberg.

PTTEP has oil and gas projects in countries including Canada, Australia, Myanmar, Indonesia, Vietnam and Oman.

To contact the reporter on this story: Fox Hu in Hong Kong at fhu7@bloomberg.net

To contact the editor responsible for this story: Philip Lagerkranser at lagerkranser@bloomberg.net

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