Bangkok--30 Mar--The Way Communications
On 29 March 2012, the Board of Directors of Big C Supercenter Public Company Limited (Big C) unanimously approved a private placement of up to 23.6 million authorized but unissued shares of Big C, representing approximately 2.9% of Big C’s existing share capital.
This capital raising is an important step in the Company's strategic plan announced in October 2011, to become the #1 modern food retailer in Thailand and a major player in the region.
Big C will use the proceeds from the private placement to fund its 2012 expansion plan, as well as reduce leverage. Funds raised will allow Big C to support the roll-out of small format stores, including through the recently announced partnership with Bangchak Petroleum PCL, which provides the potential for 300 mini Big C openings at Bangchak filling stations over the next 5 years.
Taking into account the private placement, the Board of Directors of Big C has decided to postpone the rights offering announced in October 2011, which it does not envisage implementing in the short term and intends to reconsider at an appropriate time.
The private placement is subject to the approval of the annual general meeting of shareholders scheduled for 30 April 2012. The private placement is expected to be completed by the end of the second quarter of 2012.
Commenting on the planned private placement, Yves Braibant, Chief Executive Officer and President of Big C said: "This transaction is a continuation of the goal we set in 2011. We believe that this is the right time to engage in the private placement to allow us to maximize our reach to consumers nationwide. The private placement will allow Big C to achieve greater financial flexibility to roll out its 2012 expansion plan and to continue to deliver long-term shareholder value."