Bangkok--24 May--Sahaviriya Steel Industries
Baht 1,650 million SSI subordinated convertible debentures were fully subscribed by existing shareholders including Sahaviriya Group. Total proceeds are to be used to subscribe newly issued ordinary shares in SSI UK which will repay the bridging loan borrowed for the efficiency improvement of SSI Teesside. The injection will strengthen the capital structure of SSI UK which has started slab production since 18 April.
Mr. Win Viriyaprapaikit, Group CEO and President of Sahaviriya Steel Industries Public Company Limited (SSI), unveiled the successful offering of 1.65 million units subordinated convertible debentures in an amount of Baht 1,650 million to existing shareholders of the Company whose names appear on the share register book as of 30 September 2011 during 15 May 2012 to 21 May 2012. Existing shareholder including Sahaviriya Group (SSI’s major shareholder) fully subscribed the offering units so the Company received total target proceeds of Baht 1,650 million or equivalent to USD 52.55 million (at the exchange rate of Baht 31.40 per USD 1).
“Total proceeds received from such offering have been used to subscribe newly issued ordinary shares in Sahaviriya Steel Industries UK Limited (“SSI UK”), a wholly owned subsidiary of the Company, on 23 May 2012. SSI UK will use this equity proceeds to optimize its capital structure by making a payment of interest and principal of a subordinated bridging loan borrowed for the Optimised Restart Plan of SSI UK in order to increase the efficiency and reliability at the capacity rate of 3.6 million tons per year. This plan has already completed and SSI Teesside started commercial operation since 18 April.” Mr. Win added.