Bangkok--1 Mar--Sahaviriya
The proceeds will be used to support the acquisition of Blast Furnace in UK - Sales target of THB 70,000 million in 2012
The share offerings through Right Offering (RO) and Private Placement (PP) attracted wide interests from both shareholders and investors, leading to the successful fund raising of THB 6,000 million. Investors expressed positive sentiments regarding the short and long term of steel market and price trend. In addition, the completed share offerings, financing plan, and the signing of the SPA, all of which have culminated into the successful asset acquisition within the first quarter of 2011. After closing, the production and supply of slab to SSI is expected to start within 6 months, hence allowing SSI to break its annual HRC production record to over 3 million tonnes.
Mr. Win Viriyaprapaikit, President of Sahaviriya Steel Industries PCL, unveiled the successful share offerings results of approximately 5,240 million shares to strengthen the company’s financial position and to support the purchase of the assets of Teesside Cast Products (TCP). Such share offerings consisted of RO of 2,620 million shares and PP of 2,620 million shares. RO shares were offered at the price of THB 1.2 per share at the ratio of 5 existing shares to 1 new share. It attracted strong interest from the shareholders, with 95% subscription resulting in a total raised fund of approximately THB 2,984 million.
With regards to PP, SCB Securities Co., Ltd. (SCBS) and TISCO Securities Co., Ltd. (TISCO) were appointed to act as the Joint-lead Underwriters for the offering. Similar to RO, great interests were shown among the investors both local and foreign, in which led to the subscription value of over THB 3,115 million. Thanks to a successful equity offering, SSI has managed to raise total proceeds of THB 6,099 million. The first trading day of shares offered under RO and PP schemes will be on 3rd March 2011.
“It is delightful that the share offerings under RO and PP schemes have enabled the company to raise funds as expected. Certain shareholders had expressed their interests by oversubscribing the shares exceeding their rights. Following numbers of presentations to local and foreign investors, we had received strong interest from institutional investors both in Asia and in Europe, investors in this region have profound understanding in the steel industry. In addition, steel price is currently on the upward trend for both short term and long term, creating an upside potential” according to Mr. Win.
Mr. Win also confirmed that the completion of share offerings under RO and PP schemes in February 2011, coupled with the company’s subsequent financing plan and SPA signing for assets acquisition of TCP, will allow the company to complete TCP acquisition within the first quarter of 2011. TCP is expected to start slab production and supply back to Thailand within 6 months. With its own supply of slab from TCP, SSI is confident that it will be able to break its annual production record of up to 3 million tonnes by 2012, with sales target of THB 70,000 million.
Enquiries
Public Relations Office, Sahaviriya Steel Industries Public Company Limited
Khun Rungkarn, Khun Numphueng Khun SaraWut and Khun Padungsak
Tel: 02-238-3063-82 Ext. 1327, 1302, 1320 and 1309