Bangkok: Thoresen Thai Agencies successfully raised THB3.964bn yesterday to fund its business expansion plans through a rights offering.
Existing shareholders were given the opportunity to subscribe to two newly issued shares at a price of THB14.00 per share for every five existing shares they owned and were allowed to subscribe for excess rights of up to 50% of their owned shares. The offering was oversubscribed by nearly 8%.
Shareholders who participated in the offering will also receive warrants at a ratio of one warrant to two newly subscribed shares. Each warrant has a 30-month term and is exercisable into one newly issued share at a price of THB17.00.
Thoresen Thai executive vice chairman Chalermchai Mahagitsiri stated, "We are extremely pleased that our shareholders have come out to support the plan put forward by management and the board. The rationale to solidify and grow the company's asset base is strong indeed, and now that the rights issue has been completed successfully, we will put our focus towards identifying and purchasing assets for our dry bulk shipping and offshore services businesses."
"We have already begun to explore opportunities to purchase targeted assets in the new-build and second hand market," added M.L. Chandchutha Chandratat, the company's president and ceo. "Our banking partners have shown interest and expressed positive feedback regarding our fleet renewal plans as well as our business model. With their continued support, we expect to be able to execute well-priced purchases on advantageous terms that will help build long term, sustainable value through a lower-cost asset base than many of our competitors." [12/03/13]
