Bangkok--19 Oct--Thai Union Frozen
Thai Union Frozen Products’ (TUF) shareholders showed overwhelming confidence in the company with a highly favorable response to the recent rights offering which was 137 % oversubscribed.
Thiraphong Chansiri, president of Thai Union Frozen Products, announced that the subscription of the rights offering of 44.16 million shares by the company’s existing shareholders has been extremely well received. The issue was fully subscribed at the pre-set ratio of 1 new ordinary share per 20 existing ordinary shares at a subscription price of 50 baht per new share. The subscription period was between October 11 and 15 October. TUF’s shareholders expressed strong interest and most overbooked the new issue in excess of their own assigned quota, resulting in a 137% oversubscription.
Mr. Chansiri added.” The proceeds from the right offerings will partly be used to finance the recent acquisition of MW Brands (which would otherwise be solely financed by debts). In other words, the new equity would help reduce some of financial obligations and interest burden. The remaining portion will be used for further business expansions, including a cold storage facility, new machineries, and investments in research and development and product innovation. All of these investments will help sustain the company’s long-term growth.”
In addition, a private placement of 29 million new shares is planned for October 18 — 22, 2010. Both the rights offering and the private placement are being arranged by Bualuang Securities PLC. All newly issued shares will be eligible for trading in the Stock Exchange of Thailand starting October 29, 2010.
Corporate Communication Division: Tel. 0-2298-0024 ext. 675-678