29-Apr-2010 9:19 AM

Thai Airways shareholders approve dividend and capital raising plans

Thai Airways announced (28-Apr-2010) a dividend payment of THB0.25 per share was approved at its Annual General Meeting for 1.7 billion shares, totaling THB425 million or is 10.2% of 2009 consolidated income before foreign currency adjustment. The dividend will be made on 27-May-2010. Shareholders also approved the increase in the carrier’s registered capital from THB17 billion (USD525 million) to THB27 billion (USD834 million) by issuing up to 1,000 million new ordinary shares at a par value of THB10.00. The capital raised is for:

  • Investments for business expansion and improvement to remain competitive in the long run;
  • Possible enablement for the carrier to have sufficient cash for repayment of debts;
  • Strengthening the carrier’s capital structure;
  • Increasing liquidity to maintain financial stability and ensure financial flexibility during periods of high volatility of the airline business.

Thai Airways appointed Phatra Securities, Morgan Stanley and Finansa Securities as financial advisers to its USD1.5 billion recapitalisation plans (The Nation, 29-Apr-2010). President, Piyasvasti Amranand, stated the planned capital increase, bond issuance and bank borrowing will be completed in 3Q2010. Mr Amranand added that although shareholders have approved the issue of new shares, not all 1 billion will be required, due to improvements in the carrier’s share price. Mr Amranand stated the share price may rise even further once Thailand’s political crisis ends. The share issue will be allocated in two tranches, with the majority to be offered to existing shareholders. Shareholders also approved the appointment of new Directors - Chaikasem Nitisiri, Weerawong Chittmittrapap, Kanit Sangsubhan, Apiporn Pasawat and Pravich Ratanapian.

Thai Airways:
“We're confident the shares will attract new investors, thanks to the improvement in the aviation industry. Many institutional investors have expressed interest in the sector. Certainly, if the Stock Exchange of Thailand Index falls to 400 points, we'll not sell the shares. But if the economy is in a terrible state, we may be in urgent need to sell them, to ensure the company remains financially strong enough to withstand volatility,” Piyasvasti Amranand, President. Source: The Nation, 29-Apr-2010.

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