TTA endorses a capital increase of "Mermaid" to strengthen its market position
Bangkok, (21 September 2009) -- Thoresen Thai Agencies Plc. (“TTA”) will support Mermaid Maritime Public Company Limited’s (“Mermaid”) rights issue to provide Mermaid with increased financial flexibility to pursue its growth strategy and for general corporate and working capital purposes.
M.L. Chandchutha Chandratat, Group Managing Director and Chief Executive Officer of Thoresen Thai Agencies Plc., revealed that “Mermaid plans to raise gross proceeds of approximately SGD 156 million, or BHT 3,771 million from the rights issue. TTA, as the major shareholder of Mermaid, will vote in favour of the Board of Directors’ resolutions relating to the rights issue at Mermaid’s extraordinary general meeting (EGM) to be convened on 14 October 2009. To demonstrate our commitment and confidence in Mermaid’s growth plans, TTA will subscribe for all of our rights shares to maintain a majority ownership in Mermaid and if necessary, subscribe for any excess rights shares that are not taken up by the other shareholders”.
Mermaid will increase its registered capital by offering 243,542,403 new ordinary shares at an issue price of SGD 0.64 on the basis of 9 rights shares for every 20 existing ordinary shares with a par value of Baht 1 each in the capital of Mermaid. Currently, TTA and Soleado Holdings Pte. Ltd. (a wholly-owned subsidiary of TTA) combined hold 57.1% of the total shares in Mermaid, so TTA and its subsidiary will apply for and pay in full approximately 139,163,070 rights shares.
“One core element of TTA’s growth-oriented business strategy is to increase investments in the energy sector. We fully support this plan, because we believe that the rights issue will benefit Mermaid and its shareholders, since it will provide Mermaid with greater financial capacity to pursue both tactical and strategic growth opportunities when they arise”, M.L. Chandchutha commented.
Thoresen Thai Agencies Public Company Limited is amongst the top 50 companies listed on the Stock Exchange of Thailand with high trading liquidity. Its investment strategy is to diversify and balance business portfolio in transport, energy, and infrastructure, both domestically and internationally. TTA is recognised as a leader in the dry bulk shipping industry, providing liner and tramp services. The company has also expanded its investment into other business areas that can support current businesses such as an investment in offshore services related to oil and natural gas drilling and subsea engineering in the Southeast Asia region through Mermaid.