Bangkok--15 Oct--Thai Union Frozen Products
Thai Union Frozen Products Public Company Limited (TUF), Thailand’s leading processor and exporter of canned and frozen seafood products, is pleased to inform that Standard Chartered Private Equity Limited (SCPE) has confirmed to exercise its right to convert the whole amount of TUF's existing 60 million euro-denominated Euro Convertible Bond (ECB) worth approximately THB 2,400 million into 45,360,045 common shares. The number of fully paid up TUF common shares after the exercise is 1,192,953,874. Presently, SCPE is the sole holder of the Euro Convertible Bond (ECB). The ECB was originally issued in late October 2010 as part of the financing scheme to support funds to TUF acquisition in Europe. The ECB carries a 5% p.a. coupon rate with a maturity of four years. Without conversion, the bond will otherwise come matured for redemption later this month.
Mr. Thiraphong Chansiri, President and CEO of TUF, said that “the decision for Standard Chartered Private Equity Limited (SCPE) to convert the ECB into TUF shares is a clear indication of SCPE's confidence in the outlook of TUF’s business, solid performance, strong competitiveness and good corporate governance; widely recognized in the local and global markets that is sustainable for long term growth.”
“More importantly, this exercise will further strengthen TUF's financial status. By converting this amount of debts into equity will immediately enhance the firm's financial strength and further reduce its debt-to-equity ratio – one of the key standard parameters of company’s financial health measured by leading financial institutions. Instead of reimbursing SCPE the principal, TUF will now be able to increase its equity.”
“We look forward to new growth opportunities and continual implementation of initiatives that would further strengthen our financial position, both domestically and internationally,” Mr. Chansiri concluded.