Tilleke & Gibbins is proud to have represented Asia Pacific Potash Corporation Company Limited, a subsidiary of Italian-Thai Development Public Company Limited (ITD), a SET-listed construction conglomerate and leader in Thailand’s infrastructure construction, as lead legal counsel in the issuance of 49.9% of the subscription shares in ITD’s wholly owned subsidiary APPC Holding Company Limited to Long Jia Industrial Development Ltd., a wholly owned subsidiary of SDIC Mining Investment Co., Ltd. SDIC Mining Investment is a leader in potash investment and operations, and one of the flagship state-owned enterprises of China’s State Development and Investment Corporation Limited.

APPC Holding Company Limited holds 90% of the total shares in Asia Pacific Potash Corporation Co., Ltd., a concessionaire with exploration and production rights in 26,446 Rais (more than 42 million sqm) of potash underground mining concession in Udon Thani Province. The sale transaction value is USD 400 million.

Led by Supasit Boonsanong and Kobchai Nitungkorn with support of Thananya Pholchaniko, our energy team was retained to assist with the full scope of the transaction, including conducting vendor legal due diligence, drafting and negotiating the memorandum of understanding and transaction documents (share subscription agreement and shareholders agreement), preparing corporate resolutions, and assisting with the signing.

This transaction is significant for Thailand as it marks the development of the country’s first underground mine. The project is expected to produce 2.1 million tons of potash annually, reducing Thailand’s need to import this essential fertilizer ingredient. Currently, Thailand imports 800,000 tons of potash a year, worth between THB 7.6 and 10 billion.