21 October 2004 01:13 [Source: ICIS news]
SINGAPORE (CNI)--Thailand’s NFC Fertilizer is planning to increase its capital through the issuance of new shares to allow the company to stay operational.
In a statement to the Stock Exchange of Thailand issued late on Thursday, NFC said its board has decided to increase the company’s capital to Baht4.00bn ($96m/Euro77m) from Baht 2.49bn by issuing more than 1.51bn new ordinary shares at a par value of Baht1/each. The new shares are to be offered to the general public, but the date for the issuance has not been set.
The plan must first be endorsed by shareholders at an extraordinary general meeting (EGM) on 23 November.
NFC recently repaid the bulk of its debt and exited a debt rehabilitation plan. Close to the time of the exit, a source close to the company said NFC was expected to seek a new injection of funds for working capital. He said NFC would need fresh capital to allow it to resume full production.
Also at the EGM, shareholders are to vote on the planned issuance of more than 176m warrants to existing shareholders, allowing them to purchase ordinary NFC shares at a cost of Baht1 per share.
The planned warrants are to be used to offset losses that NFC shareholders suffered due to an earlier capital writedown. They will be offered to the company's shareholders whose names appeared in the share register book on 19 May 2004, the date of the capital decrease.
The warrants have a three-year maturity and would enable the holders to accquire NFC shares at a price of Baht1 per share for each warrent held. They can be first exercised one year after the date of issuance.
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