Picnic Gas and Engineering Plc has agreed buy over 9.6 million shares of World Gas Co Ltd from SHV Gas NV Group for between US$26 million and $28 million. In a statement to the Stock Exchange of Thailand, Picnic Gas said that the final price was still under discussion as the two sides were trying to evaluate the financial status and outlook of both companies.

“Through the acquisition, we hope to expand market share. And with bigger operations, we should be able to reduce operating costs, due to the economy of scale. That should benefit our future operation,” Picnic Gas said.

It expects the deal to be completed in two months subject to obtaining approval from both firms’ shareholders. Picnic said it will finance the deal entirely through borrowings.

World Gas said it owned assets worth a total of Bt1.65 billion last year despite reporting a net loss of Bt17.92 million. (US$1=41 baht).