Picnic managing director Nattachai Aramrasmewanich said his company would hold an extraordinary meeting of shareholders on March 21 to approve an increase in the company's registered capital from Bt1.48 billion at a par value of Bt1 a share, to Bt2.99 billion.

The company plans to earmark about 1.48 billion newly issued shares for existing shareholders at a ratio of one new share for every two held shares at a price of Bt1 each.

An extraordinary meeting of shareholders on March 2, called to approve the recapitalisation, had to be postponed when the meeting failed to make a quorum.

Nattachai said the company also wished to change the stated purpose to which the additional funds would be put.

He said about Bt500 million would be spent on expansion of the businesses and engineering business, or investment in public companies both listed or non-listed, or in a limited liability company. A further Bt500 million will go to repayment of debts and about Bt477 million will be used as Picnic's working capital.

Previously, the purpose of the funds was expansion of the businesses and engineering business, about 20 per cent; repayment of debts, about 65 per cent; and use as working capital, about 15 per cent.

Meanwhile, the Stock Exchange of Thailand (SET) said it had received information on Monday that an asset-management company is seeking repayment by Picnic of overdue bills of exchange amounting to about Bt63.28 million and Bt6.33 million through legal processes.

Picnic notified the SET on February 22 that it had outstanding and overdue bills of exchange with three asset-management companies amounting to about Bt510 million. It said the bills had matured between October 28, 2005 and November 30, 2005 and the asset-management companies were seeking repayment of Bt156.6 million through legal action.

Yesterday the SET sought additional details from Picnic and pointed out that the company was required to inform the SET immediately if it incurs additional legal liabilities.

Picnic was also instructed to clarify the effect of the legal action on its financial position and its interest payments. In addition, the company was asked to inform the SET of the methods being used to repay not only the overdue bills of exchange involved in the legal dispute, but also the remaining overdue bills amounting to Bt283.8 million.

"The SET requires PICNI [Picnic Corp] to clarify [the situation, with] more information within March 8, 2006.

"Moreover, the SET would like to inform PICNI's shareholders and general investors to follow up the additional information of PICNI, which will be disseminated via the SET's disclosure system," the exchange said in a statement.

Meanwhile, Picnic informed the SET that Police Lt-Colonel Pongthep Lapvisuthisin had been appointed a director and chairman of its board of directors, effective from last Monday.

The company also changed the named of SSC Petro Development Co Ltd, a subsidiary, to Picnic International Co Ltd. 

Siriporn Chanjindamanee

The Nation