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thor friendship bulk carrier

Thoresen Thai Plans $223 Million Rights Issue

Reuters
Total Views: 19
January 20, 2015

Thor Friendship, image: Thoresen

reuters_logo1BANGKOK, Jan 20 (Reuters) – Thai dry bulk carrier Thoresen Thai Agencies Pcl said on Tuesday it planned to raise about 7.3 billion baht ($223.2 million) by offering new shares via a rights issue at 14 baht each, a 19 percent discount to its last closing price.

Thoresen Thai planned to allocate up to 520.47 million new shares to existing shareholders at a ratio of six new shares for each 15 existing shares, with a subscription period from Feb. 25 to March 3, it said in a statement.

The proceeds from the rights offer would be used for expanding business, repaying debt and as working capital.

Thoresen Thai shares were up 1.2 percent at 17.40 baht at 0430 GMT, while the overall Thai stock market index was up 0.1 percent.

In a separate statement, the company said it had set the IPO price range for its subsidiary PM Thoresen Asia Holdings Pcl at 17-20 baht a share.

The shipping firm will offer pre-emptive rights to its shareholders to subscribe the IPO at a ratio of one PM Thoresen share for 37 Thoresen Thai shares.

PM Thoresen, a holding company with interests in fertiliser and hire purchase businesses, plans to offer 35.42 million shares, including 27.32 million shares held by Thoresen Thai, to the public in the first quarter.

Thoresen Thai has diversified into the energy, fertiliser and infrastructure sectors after it was hit by oversupply in the dry bulk shipping business since 2010.

The company has in been in talks with several investors for potential acquisitions in new businesses.

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

(c) 2015 Thomson Reuters, All Rights Reserved

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