PTTML has agreed to pay a price of $1.72 per share to Straits Resources shareholders and both parties have struck a scheme implementation agreement.

Once Straits has completed its planned demerger process, the jettisoned SRL Coal company is expected to have no debt and net cash of $50 million along with a 40% interest in PTT Asia Pacific Mining.

PTTML already owns 60% of the Asia-Pacific mining company and will thus gain complete ownership if the SRL Coal acquisition is successful.

The Asia-Pacific coal company holds a 45.6% shareholding in Singapore-listed Straits Asia Resources which operates the Sebuku and Jembayan coal mines in Indonesia.

The two mines produced a total of 2.72 million tonnes of thermal coal for the September quarter and 7.72Mt for the first nine months of 2010.

PTT Asia Pacific Mining also has a 35% stake with Far East Energy Corporation along with coal exploration rights in Brunei plus a 33.5% stake in coal deposits within the Sakoa coal basin in Madagascar.

Straits will hold a shareholder meeting in the March quarter over the SRL Coal transaction and demerger process.

The acquisition also requires Foreign Investment Review Board approval, along with Singaporean regulatory approval.

Straits shares closed up 14% to $2.21 yesterday afternoon.

But this morning they have shed 3.6% to $2.13.