TTA rights issue raises THB 4,173 million
Proceeds to be used to expand shipping fleet, while tapping into growth opportunities in oil & gas exploration and other areas
Bangkok, Thailand, 13 March 2014 -- Thoresen Thai Agencies Public Company Limited ("TTA") today announced that it has successfully raised THB 4,173 million to fund its business expansion plans through the rights offering announced in November. The rights offer was oversubscribed by 7%.
Funds raised through the rights offer will be used to maintain agility at the holding company level, enabling TTA to capitalise on market opportunities in its core subsidiaries and joint venture companies.
Transportation is drawing considerable attention as recovery in the dry bulk shipping sector is showing signs of accelerating. In order to capitalise on this recovery, TTA aims to continue taking advantage of attractively priced vessels by expanding the Thoresen Shipping Singapore Pte fleets through the acquisition of good-quality second-hand Supramax vessels. In energy, TTA sees opportunities for growth in Mermaid Maritime Public Company Limited as exploration and production activity continues to ramp up in many of our key markets. The additional funds will also enhance TTA's ability to take timely advantage of new growth opportunities, across the group's businesses, which will benefit TTA in the long term.
Following the rights issue, the Company's paid-up share capital will increase from THB 993 million to THB 1,291 million, following the allocation of 298 million newly issued ordinary shares to existing shareholders. The new shares will be listed and tradable around 18 March 2014, while the newly issued warrants (TTA-W4) will trade by the end of March 2014.
Existing shareholders were given the opportunity to subscribe to 3 newly issued shares at a price of THB 14.00 per share for every 10 existing shares they owned and were allowed to subscribe for excess rights. More than 284 million of the 298 million shares available in the rights offering were subscribed to under basic rights. Only 14 million shares (approximately) were left available for excess rights, while there were requests from shareholders for more than 33 million shares under excess rights.
Subscribing shareholders will also receive free warrants (TTA-W4) for new shares at a ratio of one warrant to three newly subscribed shares. Each warrant can be converted into one common share at an exercise price of THB 18.50 per share within 36 months of the warrant issuance.
Mr. Chalermchai Mahagitsiri, TTA's President & CEO stated, "We are delighted with this result, and are very grateful for the ongoing trust our shareholders' have demonstrated in TTA. The strong and full support we have received have made this rights offer very successful, and this will enable us to invest in the business and enhance future shareholder returns. With the proceeds from the rights offer, we plan to grow by taking advantage of market opportunities across our key subsidiaries and associate companies."
THB 4,173 million in funds from the RO will be put towards short and medium term investment opportunities, an additional potential THB 1,838 million, which if raised from the exercise of TTA-W4 by 2017, will be earmarked towards other future opportunistic investments.