Bangkok--Dec 8--SET
Thai Bourse Resumes Trading RANCH's Securities & Transfers Company Back to Agribusiness Sector
The Stock Exchange of Thailand (SET) has returned Bangkok Ranch's (RANCH) securities to the Agribusiness Sector of the Agro & Food Industry Group and will resume trading its shares from December 20, 2005 onwards.
The SET considers RANCH to have met the Exchange's criteria for exclusion from being delisted. This is the sixth firm whose securities have been returned to the Agribusiness Sector.
SET EVP Mr. Suthichai reported, "As noted in RANCH's letter requesting approval to transfer to its former sector, the company has been earning net operating profits from its core business for three consecutive quarters (starting with Q1/2005, ending March 31, through Q3/2005, ending September 30). RANCH's
financial statements, as of September 30, 2005, showed a positive shareholder's
equity of THB1.85 bln. (approx. USD 46 mln). The company has also successfully
completed its debt restructuring and the Central Bankruptcy Court ended the
business rehabilitation of the company on August 11, 2005. RANCH has been able
to demonstrate both its strong financial position and performance on
a continuous basis."
" RANCH supplies fresh and frozen ducks and by-products to the meat market. The company's production covers every aspect of the business, sold in both international and domestic markets under the trademark "DALEE". After
restructuring its debt, the firms' financial status has been improving. At the
beginning of 2004, there was an outbreak of avian influenza, which affected
sales of certain RANCH products and increased its operating expenses. However, the company has been able to survive and leave the REHABCO sector because of management's experience and good financial status," said Mr. Suthichai.
"RANCH 's strategic shareholders, who collectively hold 82,938,261 shares, or 97.27% of its total outstanding shares, have informed the SET that they will not sell their securities for at least one year from the day that RANCH
resumes trading. The strategic shareholders consist of the Navis Group and two
of the RANCH's executives. (The SET prohibits them from selling more than 25%
of their shares during the first six months after trading resumes, while over
the next six months, they may sell up to an additional 25 %.),"
the SET EVP said.
Mr. Suthichai stated that other companies that wish to move from the REHABCO sector to their normal sectors had to:
1. Show a positive shareholder's equity (after adjustments in accordance
with the auditor's opinion) before leaving the REHABCO sector.
2. Have a net operating profit from the company's core business for three consecutive quarters or one year before submitting its application for
reinstatement.
3. Have successfully restructured over 75% of the company's total debt and been able to settle its debts on time.
4. Be able to demonstrate the company's strong financial position and
performance on a continuous basis, as reflected by the company's cash flows.
To allow the market mechanism to work freely, the SET will
temporarily lift the ceiling and floor limits on RANCH's securities
on December 20, 2005.
Note: Please see RANCH's Information Message currently being disseminated on the SET Market Analysis and Reporting Tool (SETSMART) and other
information about the company from its website: http://www.bangkokranch.co.th End.