Bangkok--6 Dec--Sansiri
Thailand’s leading property developer Sansiri Plc said it plans to double its current registered capital to raise fund to finance its future projects and pave way for the company to the forefront of the country’s real estate sector.
The company will issue 1.473 billion new shares, equal to its existing capital base, and will offer them to institutional investors, pushing the total registered capital up to 12.61 billion baht.
The new shares will be placed to the investors through two joint lead managers; Ayudhya Securities (AYS), the financial advisor on the deal, and UBS Securities (Thailand), at the price of 4.28 baht per share, compared to the seven-day weighted average price of 4.08 baht (23 November- 1 December 2006).
All shareholders will also be offered with warrants at the ratio of two shares per one warrant. These warrants, to be later listed, carry a five-year term with exercisable ratio of one warrant for one new share.
The issuance and allotment of the warrants will be submitted for the Securities and Exchange Commission’s approval and distributed after the completion of the new share sale.
The new registered capital will become 2.946 billion shares or 12.61 billion baht with a par value of 4.28 baht each, once the placement of shares is completed in the first quarter of next year.
Should the warrants be totally converted in the next five years to come, Sansiri’s registered capital will become 19.24 billion baht. The plan will be raised in a shareholder meeting on 18 January 2007.
“The proceeds from the share sale will be used to help us expand our businesses and ensure that the company achieve its objective of becoming Thailand’s number one property developer in the next few years,” Sansiri’s President Srettha Thavisin said.
“With the stronger capital base, Sansiri will have plenty of room to grow and be the market leader. I see its potential and have offered myself as the new investor in the company, looking forward to buying almost half of the new equities,” he said.
The fund raised will significantly help reduce Sansiri's current debt-to-equity to 0.88 from 1.37 times now.
“We believe Sansiri is ready to become the platform for creating the largest property developer in Thailand,” said AYS’s Managing Director Porntat Amatavivadhana.
“The recapitalization plan is a once and for-all solution, which will help attract both local and foreign investors’ interest in the company,” Porntat said. “Direct investment in the company as a shareholder will demonstrate Khun Srettha’s dedication and commitment in driving the company forward.”
AYS views that the company’s well structured capital base would enhance its competitive advantage against its competitors and that the recapitalization plan would allow Sansiri to take advantage of other opportunities in the market including larger scale projects.
“This is a MBO - or Management Buy Out transaction, which may be quite new to Thailand, but is actually quite common in other countries. Khun Srettha believes in the growth prospects of the company and is willing to take on the role of the major shareholder,” Porntat said.
“We believe Sansiri’s recapitalization plan and Khun Srettha’s commitment in the company should be well accepted by investors,” he added.
Sansiri presently offers a broad range of housing projects from single-detached houses to condominium under the brands such as Baan Sansiri, Narasiri, Setthasiri and Saransiri.
For more information, please contact:
Suppaach Chatarupavanich
Tel. 0-2201-3535 Mobile. 081-374-2537
Public Relations Manager
Sansiri Plc
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