Siam Cement Group (SCG) has entered into a Share Purchase Agreement to buy an additional 8,875,075 shares (10.14% of outstanding shares) in Thai Plastic and Chemicals PLC (or TPC) from Thasco Chemical Company Limited, one of TPC?s primary shareholders and also a subsidiary of Asahi Glass Company Limited (or AGC). This transaction?s value is estimated at approximately 1,600 MB at the price of 180 Baht per share. Upon the completion of the transaction, SCG?s stake in TPC will increase from 26.13% to 36.27%. When combined with the shares held by CPB Equity Company Limited (or CPB), a subsidiary of the Crown Property Bureau who is SCG?s major shareholder, the collective holding of the two groups amounts to 57.22%. According to SEC regulations, with the combined holding of the two groups, SCG will be required to make a tender offer for the remaining shares of TPC to the public at 180 Baht per share. Moreover, the tender offer process is expected to start within the next 2 weeks, and should be completed by early August 2004. The purchase of TPC shares from Asahi Glass is in-line with SCG?s policy to pursue investment opportunities related to its core businesses, with non-dilutive return on SCG?s financial performance. Moreover, with the expected upward trend in global petrochemicals earnings, the increased stake will allow SCG to enhance its future earnings and growth. TPC has a total of 87.5 million outstanding shares. The company is an integrated world scale producer of PVC and PVC related products, with production facilities located in Thailand, Vietnam, and Indonesia. Its total production capacity of PVC, VCM, and EDC are 700,000 tons, 440,000 tons, and 115,000 tons, respectively. PVC is one of the more versatile plastics in the world, and ranks second after polyethylene in terms of global consumption. The demand for PVC is largely related to the global construction markets with applications for pipes, and films. Hence, its demand is highly correlated with the economic cycle. Others applications include it?s predominant use in the automotive industry in areas such as side molding and under-the-hood components. Furthermore, PVC applications and products are developed for use in other building materials such as window frames, doors, roofing products, and wall panels.