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15-Mar-2010 12:06 PM

Thai Airways to offer up to USD1 billion new shares

Thai Airways confirmed plans to offer up to 1 billion new shares to the public and existing shareholders in 2Q/3Q2010, to raise up to USD720 million, subject to shareholder approval on 287-Apr-2010 (Reuters/Bangkok Post/The Nation, 12-Mar-2010).

  • New share offer: The carrier plans to decide on allocation of new shares and the offer price at a later date, but stated it would offer some of the shares to the Thai Finance Ministry, to maintain its 51% majority stake. Funds raised will be used to repay debt, finance future aircraft orders and strengthen capital. President, Amranand Piyasvasti, stated the offer would reduce its debt-to-equity ratio from the current 4.0 to 2.0, and would raise its registered capital from THB17 billion (USD521 million) to THB27 billion (USD828 million);
  • Bonds sale: Thai also plans to sell up to USD1.2 billion in bonds in the next five years, including a sale of THB11 billion (USD337 million) in bonds to refinance debt due in 3Q2010. Thai is due to repay THB29 billion (USD900 million) in debt this year;
  • Aircraft leases: Thai’s Board of Directors approved plans to lease of three B777-300ER aircraft from Jet Airways for three to five years. The carrier is also currently negotiating to lease three new B777-300ERs from Air India for five years.

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