Thoresen Thai Plans $223 Million Rights Issue

BANGKOK, Jan 20 (Reuters) – Thai dry bulk service Thoresen Thai Agencies Pcl mentioned on Tuesday it deliberate to boost about 7.3 billion baht ($223.2 million) by providing new shares through a rights challenge at 14 baht every, a 19 p.c low cost to its final closing worth.

Thoresen Thai deliberate to allocate as much as 520.47 million new shares to present shareholders at a ratio of six new shares for every 15 present shares, with a subscription interval from Feb. 25 to March 3, it mentioned in a press release.

The proceeds from the rights supply can be used for increasing enterprise, repaying debt and as working capital.

Thoresen Thai shares have been up 1.2 p.c at 17.40 baht at 0430 GMT, whereas the general Thai inventory market index was up 0.1 p.c.

In a separate assertion, the corporate mentioned it had set the IPO worth vary for its subsidiary PM Thoresen Asia Holdings Pcl at 17-20 baht a share.

The transport agency will supply pre-emptive rights to its shareholders to subscribe the IPO at a ratio of 1 PM Thoresen share for 37 Thoresen Thai shares.

PM Thoresen, a holding firm with pursuits in fertiliser and rent buy companies, plans to supply 35.42 million shares, together with 27.32 million shares held by Thoresen Thai, to the general public within the first quarter.

Thoresen Thai has diversified into the power, fertiliser and infrastructure sectors after it was hit by oversupply within the dry bulk transport enterprise since 2010.

The firm has in been in talks with a number of traders for potential acquisitions in new companies.

Earlier this month, Thoresen Thai accomplished the acquisition of a 9 p.c stake in China’s Sino Grandness Food Industry Group Ltd, its first step into the meals and beverage sector in December. ($1 = 32.7000 Thai Baht) (Reporting by Khettiya Jittapong; Editing by Richard Pullin and Prateek Chatterjee)