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TTA announces plan to list PM Thoresen Asia Holdings Ltd on Stock Exchange of Thailand

Back Dec 19, 2013

Bangkok, Thailand, 19 December 2013 -- Thoresen Thai Agencies Public Company Limited ("TTA") today announced plans to list PM Thoresen Asia Holdings Ltd. (“PMTA”), a subsidiary wholly-owned by TTA at present, on the Stock Exchange of Thailand (“SET”). PMTA plans to offer 35,420,000 shares to existing TTA shareholders and if necessary to the public during the first quarter of 2014.

PMTA’s core operating subsidiary is Baconco Co., Ltd. (“Baconco”), which has been profitable every year since it was acquired by TTA in 2009. In TTA’s fiscal year 2013 which ended on 30 September 2013, Baconco posted record profits of THB 253 million on revenues of THB 3,229 million.

The decision to spin off PMTA reflects Banconco’s increasing market value and the need to provide a strategic financial platform to support its further growth. Baconco has already evolved into Vietnam’s No. 2 fertiliser company in terms of production and stands today as the sector’s most profitable company. Baconco also operates a relatively smaller but growing warehouse business, which saw its rental revenues double year-on-year in fiscal year 2013.

To facilitate its planned listing, PMTA plans to increase its share capital from THB 931 million divided into 93,100,000 ordinary shares at a par value of THB 10.0 per share, to THB 1,012 million, divided into 101,200,000 ordinary shares at a par value of THB 10.0 per share. The newly issued 8,100,000 ordinary shares together with 27,320,000 of the existing ordinary shares currently held in PMTA by TTA will be offered as pre-emptive rights to TTA shareholders based on shareholding percentage, with any unsubscribed shares then being offered to the public at the same offering price. Following the listing, TTA’s stake in PMTA will be reduced from 100% to 65%. Pricing information for the share sale will be announced in due course.

Mr. Chalermchai Mahagitsiri, TTA's incoming President & CEO said, "The listing of PMTA is yet another exciting milestone in the development and evolution of TTA. PMTA will become TTA’s third listed subsidiary, following the successful listing of Mermaid Maritime Public Company Limited on the Singapore Stock Exchange in 2007 and the 2009 acquisition of Unique Mining Services Public Company Limited, which is listed on the SET. The pre-emptive rights offer structure under which we are listing PMTA is specifically designed to allow TTA’s existing shareholders to invest in Baconco’s agrochemical and logistics businesses while being protected from the dilution effects on TTA’s equity. I have full confidence that this move will unlock value across the spectrum and will provide Baconco with even greater resources to reach its next level of growth.”

In addition to TTA realising gains on its investment in Baconco, PMTA will also be further capitalised from the sale of the newly issued 8,100,000 shares, enabling Baconco to further fund the growth of its quickly expanding warehouse and logistics business, while providing additional capital for the company to boost export sales of its fertiliser products.

Concluded Mr. Mahagitsiri, “This move will enhance Baconco’s ability to secure funding without having to depend on TTA, establishing the company as an independent growth engine in its own right. Our South Vietnam strategy remains an important part of TTA’s overall portfolio, and we are confident that with greater independence will come even greater value, as more resources and more streamlined oversight are implemented as a result of this new structure.”