A deal could possibly be price no less than $400 million and is likely to be introduced as quickly as the approaching weeks, the folks stated. No settlement has been finalized and talks may nonetheless collapse, they stated.
ITD, as Italian-Thai Growth is understood, Asia Pacific Potash and SDIC didn’t reply to requests for remark.
ITD shares jumped as a lot as 11%, the most important achieve in three weeks.
Bloomberg Information reported in February that ITD was contemplating promoting its 90% stake in Asia Pacific Potash and speaking with potential patrons, together with from China. In April, ITD’s govt vice chairman reaffirmed that talks have been ongoing and asset gross sales would speed up because the builder tries to repay money owed.
Whereas ITD remains to be one in every of Thailand’s largest development companies, its market worth has tumbled to just a little over $100 million from greater than $1.5 billion lower than 10 years in the past. Web revenue for the primary quarter was about 122 million baht ($3.4 million), down 60% from a 12 months earlier, the corporate stated final week.
After reporting a fourth-straight annual loss in March, ITD stated it anticipated to get new loans and promote non-core property to proceed operations and tackle a liquidity crunch. Bondholders additionally accredited two-year extensions of redemption dates in January. ITD’s whole liabilities have been 107 billion baht as of Dec. 31.
ITD acquired Asia Pacific Potash in 2006, giving it entry to high-grade potash deposits in Thailand’s Udon Thani province, the place it has annual manufacturing capability of two million tons, in response to its web site.
SDIC Mining is a subsidiary of China’s State Growth and Funding Corp., which invests in non-coal mineral sources and associated industries.
(By Dong Cao, Elffie Chew and Anuchit Nguyen)