Bangkok--18 May--Minor Corporation’s
Minor Corporation’s (Minor) 1Q09 revenues were down 12% to Baht 692 million as the global economic recession affected Minor’s lifestyle brands distribution and contract manufacturing businesses. In 1Q09, Minor initiated a plan to unwind its cross-shareholding structure with Minor International (MINT) prior to an expected tender offer from MINT to exchange 1.14 MINT shares for 1.0 Minor shares. In unwinding this cross-shareholding structure, Minor booked a Baht 2,343 million provision. As a result, total net loss for 1Q09 was Baht 2,296 million.
Minor’s lifestyle brand sales and distribution business, which accounted for 44% of total 1Q09 sales, showed an 15% decrease in revenues to Baht 301 million as the global economic recession affected Thailand’s retail industry. Sales from the fashion business, which includes brands such as Esprit, Bossini, Timberland and Charles & Keith, were down by 16% to Baht 248 million. Sales from the cosmetics business, which includes brands such as Red Earth, Bloom, Laneige and Smash Box, decreased by 14% to Baht 53 million.
Minor’s contract manufacturing business, which accounted for 50% of total 1Q09 sales, experienced a 6% decrease in sales as many of its fast moving consumer goods (FMCG) customers delayed production orders due to a decline in regional demand. Minor’s factory, which began operating in 2004, is one of Southeast Asia’s leading contract manufacturers and it is well positioned to accommodate new customers and support higher production volumes in the future.
Minor is currently undergoing the business restructuring with MINT, having been approved by the Extraordinary General Meeting of Shareholders on Mar 6, 2009 and by the SEC on May 7, 2009. MINT has announced the tender offer for all securities of Minor with the offering period of May 11 — Jun 12, 2009. Once completed, Minor shares shall be de-listed from the SET. Based on the independent financial advisor’s report, should any Minor shareholder reject the offer and continue holding Minor shares, key impacts of this business restructuring include 1) limitation on dividend payout due to retained loss and negative equity, and 2) lack of trading liquidity as a result of share delisting from the SET.
Minor Corporation (Minor) is a leading distributor of international lifestyle brands in Thailand focusing primarily on fashion, cosmetics and education. Its brands include Esprit, Red Earth, Bossini, Timberland, Charles & Keith, Bloom, Laneige, Smash Box, Tumi, Zwilling J.A. Henckels, Time Life, and World Book. It owns and operates one of Thailand’s leading contract manufacturers and maintains an investment portfolio of listed and private securities including an 18.6% stake in Minor International. For more information on Minor, please visit
Press Contacts: Pratana Mongkolkul / Prapharat Tangkawattana at Tel: (662) 381-5151