Thai PTT eyes stake in Indonesia's Chandra Asri - source

Thailand's top energy firm, state-controlled PTT Pcl , wants to buy a stake in Indonesian petrochemicals maker PT Chandra Asri as part of its foreign expansion drive, a source at the Energy Ministry said on Friday. 

"PTT group has shown interest and is studying the possibility of buying the stake in the Indonesian petrochemical firm from Temasek," the source, who declined to be identified, told Reuters. 

"This should be the starting point for PTT to expand into the petrochemical business in Indonesia," he said, adding PTT group was not yet in talks with the seller and had not mandated any financial adviser for the moment. 

Singapore state investor Temasek Holdings is trying to sell its 23 percent stake in the Indonesian petrochemicals maker in a deal worth $400 million, two sources with direct knowledge of the deal told Reuters recently. 

The market had expected PTT Chemical Pcl , a flagship in the petrochemical business of PTT group, to be interested in the stake, and another potential buyer was Siam Cement , Thailand's top conglomerate. 

PTT Chemical declined to comment on the report. 

Siam Cement is also expected to be among bidders for Indonesian chemical producer Sulfindo Adiusaha in a potential $700 million deal, a source familiar with the matter said earlier this week. 

Siam Cement declined to comment on both deals. 

PTT and Siam Cement are major Thai companies which have been aggressive in looking for opportinuty to buy assets overseas especially in Southeast Asia. 

PTT Chemical has said it wanted to focus on markets in Vietnam, Indonesia and the Philillpines, which are its export markets. 

PTT Chemical has capacity for 2.88 million tonnes of olefins products a year and it is in the process of merging with another PTT affiliate, PTT Aromatics and Refining Pcl , expected to be competed in October. 

At 0929 GMT, PTT Chemical shares were up 3.6 percent, while the broad market was 0.75 percent higher. ($1 = 29.99 Baht). Source: Reuters