Thai Olefins PCL, Thailand’s third largest olefins maker, is interested in buying a stake in polyvinyl chloride (PVC) maker Vinythai PCL, a PTT PCL source said.

Such an acquisition would be good for both companies, but market expectation that the buying price might be lower than the market price pushed Vinythai shares down initially, dealers said.
“The issue is under consideration, which is expected to be concluded soon,” the source said.
PTT is major shareholder in Thai Olefins, which supplies Vinythai with ethylene, a raw material for making PVC.
Vinythai, Thailand’s second-largest PVC producer, is 46 per cent owned by Belgium’s Solvay.
Thailand’s largest agribusiness conglomerate Charoean Pokphand Group owns about 25 per cent of Vinythai.
Analysts said the deal would help strengthen Thai Olefins’s sales as it sold Vinythai 61,000 tonnes of ethylene a year.
“Vinythai will have a strategic partner, while Thai Olefins will be able to secure its supply deals with clients,” said an analyst at Kiatnakin Securities.
Thai Olefins, 49.9 per cent owned by PTT, produces olefins like ethylene and propylene.