PSP Receives Capital Infusion

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PSP Specialties announced recently that it has entered a share purchase agreement with an investment fund focused on promoting development in key segments of Southeast Asian industry.

The investment fund – CPFam-LDA Asia Growth Fund – agreed to invest up to 500 million baht (U.S. $13.6 million), according to a May 21 news release by PSP, which is headquartered in Bangkok. The fund, which was launched 10 months ago, had already become a PSP shareholder.

The news release did not provide a timeline for the execution of the agreement. PSP officials discussed only broadly and briefly how the funds will be used, suggesting they would go to development of new products and marketing to new end-user industries.

“Our strategic plan is to strengthen the core business by expanding the revenue portfolio to various specialty products and international markets, and to optimize sustainable growth from investment in new target industries,” PSP Deputy CEO Sakesan Krongphanich said in the news release. “Listing on the Stock Exchange of Thailand last year was our achievement, but to have an investor with strong global connections will enhance PSP’s growth significantly.”

PSP manufactures and markets finished lubricants and greases, as well as process oils and transformer fluids – primarily in Thailand but also in Myanmar. Its business units also distribute Chevron Oronite lubricant additives in Thailand, Cambodia and Laos. It reported revenue of 12.3 billion baht in 2023, a 7% decline from 2022.

CPFam-LDA was formed last year by Thai conglomerate Charoen Pokphand Group and LDA, a global investment firm headquartered in the United States. It aims to invest in companies with high-growth potential positioned to support sustainable developments in energy, agriculture and technology.

“PSP represents the type of high-potential company we seek to support – crucial to its industry and poised for substantial growth and development,” fund Director Anthony Romano said.

Related Topics

Finished Lubricants    Region    Southeast Asia    Thailand