Bangkok--2 May--SET
Mr. Suthichai Chitvanich, Executive Vice President (EVP) of the Stock Exchange of Thailand (SET), announced that the SET would transfer the securities of Thai Heat Exchange Public Company Limited (THECO) from the REHABCO sector to Automotive sector (Industrials Group) on May 15, 2006 onwards.
Mr. Suthichai said that "THECO requested the approval to transfer its securities to Automotive sector. The company has been earning net operating profits from its core business for three consecutive quarters (starting with Q2/2005, ending June 30, through Q4/2005, ending December 31). THECO's financial statements, as of December 31, 2005, showed a positive shareholder's equity of THB 134 million. The company has also successfully completed its debt restructuring of THB 575 million from the rehabilitation plan.
In adiition, THECO received new capital of THB 513 million from private placement. The paid-up capital will increase from THB 204.66 million to THB 717.66 million and the shareholder's equity will increase in the same amount. Moreover, THECO will have THB 80 to130 million of cash flow to operate their business. After completing the rehabilitation plan, THECO will request the Central Bankruptcy Court to end the business rehabilitation of the company.
THECO principal activities are the manufacturing and trading quality condenser coils, cooler coils, heater coils, refrigeration coils, box air-conditioners, evaporator coils for automobile and room air-conditioners to clients who are agents of selling application and fixing automobile air-conditioners. THECO also be a sole distributor for Sanden Compressors which are known as an important part. In the part of room air-conditioners, THECO manufactures cooler coils and heater coils to air-conditioner factory."
Mr. Suthichai added that "THECO securities resumes trading under REHABCO continously, THECO expresses its desire to strategic shareholders to engage to the SET condition concerning silent period for 1 year. Those shareholders are controlling shareholders, executive management, including their related or associated persons and also shareholders who hold shares of above 5% including related persons amounting 433,566,455 shares or 60.41% of paid up capital. 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%, therefore,they can sell 108,391,614 shares for each period of six months."
The SET posts a "C" (Compliance) sign on THECO's securities trading in the REHABCO starting from June 1,2005. THECO fulfilled the SET's criteria for exclusion from being delisted, therefore, the SET considered to transfer its securities to Automotive sector and lifted a "C" sign from its securities on May 15, 2006 onwards.
Finally, Mr. Suthichai added that investor should closely consider THECO's information as well as its information memorandum before making their decisions to purchase THECO's securities. All details have been disseminated on the SET Market Analysis and Reporting Tool (SETSMART) and THECO's website at www.thaiheat.com .