TRIS Rating Co., Ltd. has placed the company rating of Advance Agro PLC (AA) on CreditAlert with “developing” implication, following the announcement of a conditional purchase offer of 99.9997% of AA’s shares by Mr. Yothin Dumnerncharnvanit on 8 November 2007.
The purchase offering is expected to be completed by the end of the first quarter of 2008, after which AA is expected to delist from the Stock Exchange of Thailand. This situation would not trigger the change of control clauses under the 11% foreign senior notes due in 2012 since Mr. Yothin is permitted to hold more than 35% of the voting stock of the company. Currently, Mr. Yothin holds the highest management position in the company even his shareholding is only 0.0003%. The purchase offering and the potential delisting may impact AA’s rating because its business and financial profiles might be changed. In addition, the delisting may cause concerns among creditors over the company’s disclosure practices. TRIS Rating will conduct an extensive review to determine the impact of this transaction on AA’s creditworthiness and will announce a rating update once the assessment has been completed. -- End
Advance Agro PLC (AA)
Company Rating: BBB
CreditAlert Designation: Developing
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Copyright 2007, TRIS Rating Co., Ltd. All rights reserved. Any unauthorized use, disclosure, copying, republication, further transmission, dissemination, redistribution or storing for subsequent use for any purpose, in whole or in part, in any form or manner or by any means whatsoever, by any person, of the credit rating reports or information is prohibited. The credit rating is not a statement of fact or a recommendation to buy, sell or hold any debt instruments. It is an expression of opinion regarding credit risks for that instrument or particular company. The opinion expressed in the credit rating does not represent investment or other advice and should therefore not be construed as such. Any rating and information contained in any report written or published by TRIS Rating has been prepared without taking into account any recipient’s particular financial needs, circumstances, knowledge and objectives. Therefore, a recipient should assess the appropriateness of such information before making an investment decision based on this information. Information used for the rating has been obtained by TRIS Rating from the company and other sources believed to be reliable. Therefore, TRIS Rating does not guarantee the accuracy, adequacy, or completeness of any such information and will accept no liability for any loss or damage arising from any inaccuracy, inadequacy or incompleteness. Also, TRIS Rating is not responsible for any errors or omissions, the result obtained from, or any actions taken in reliance upon such information.
The purchase offering is expected to be completed by the end of the first quarter of 2008, after which AA is expected to delist from the Stock Exchange of Thailand. This situation would not trigger the change of control clauses under the 11% foreign senior notes due in 2012 since Mr. Yothin is permitted to hold more than 35% of the voting stock of the company. Currently, Mr. Yothin holds the highest management position in the company even his shareholding is only 0.0003%. The purchase offering and the potential delisting may impact AA’s rating because its business and financial profiles might be changed. In addition, the delisting may cause concerns among creditors over the company’s disclosure practices. TRIS Rating will conduct an extensive review to determine the impact of this transaction on AA’s creditworthiness and will announce a rating update once the assessment has been completed. -- End
Advance Agro PLC (AA)
Company Rating: BBB
CreditAlert Designation: Developing
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Copyright 2007, TRIS Rating Co., Ltd. All rights reserved. Any unauthorized use, disclosure, copying, republication, further transmission, dissemination, redistribution or storing for subsequent use for any purpose, in whole or in part, in any form or manner or by any means whatsoever, by any person, of the credit rating reports or information is prohibited. The credit rating is not a statement of fact or a recommendation to buy, sell or hold any debt instruments. It is an expression of opinion regarding credit risks for that instrument or particular company. The opinion expressed in the credit rating does not represent investment or other advice and should therefore not be construed as such. Any rating and information contained in any report written or published by TRIS Rating has been prepared without taking into account any recipient’s particular financial needs, circumstances, knowledge and objectives. Therefore, a recipient should assess the appropriateness of such information before making an investment decision based on this information. Information used for the rating has been obtained by TRIS Rating from the company and other sources believed to be reliable. Therefore, TRIS Rating does not guarantee the accuracy, adequacy, or completeness of any such information and will accept no liability for any loss or damage arising from any inaccuracy, inadequacy or incompleteness. Also, TRIS Rating is not responsible for any errors or omissions, the result obtained from, or any actions taken in reliance upon such information.