"Yesterday [Monday], we talked to KTB about a partial payment of the loan balance, which stands at Bt1.6 billion. We will use funds from SIM's share sale to pay for it," said Sirichai Rasameechan, vice chairman of Samart's executive board, yesterday on the sidelines of Samart's shareholders meeting.

He said Samart was paying Bt313 million in interest a year and reducing the balance would cut its interest burden.

Currently, Samart's debt-to-equity ratio is 2.1, with long-term debt of Bt1.6 billion owed to KTB.

He said the sale of shares the company holds in SIM and Cambodia Samart Communication to Telecom Malaysia would generate Bt1.2 billion to Bt1.3 billion.

Sirichai said that although his company had to invest in new businesses this year, Samart would still be able to allocate 50 per cent of its net profit for dividend payments, in line with the company's policy.

Last week, Samart announced that it would spend more than Bt850 million to build a power plant in Cambodia to supply electricity under a 10-year contract to a Siam Cement factory there. The plant is expected to generate Bt2.4 billion in annual revenue.

Samart is also in negotiations to buy a 10-per-cent stake in Cambodia Air Traffic Service. In Thailand, it plans to become involved in alternative energy and waste treatment.

The company's shareholders yesterday agreed to add business objectives that were in line with the company's new businesses, including producing, buying and selling electricity as well as other forms of energy.

This includes producing, buying, selling and improving machinery and tools; and exploration, design and instalment of power plants, tap-water production and water-, waste- and air-treatment systems.

Meanwhile, Samart subsidiary Samart Telcoms Plc (Samtel) said it was considering increasing its revenue projections from the current Bt5.3 billion as a result of its first-quarter revenue exceeding last year's.

"We're discussing whether to increase our income projection, after reviewing our first-quarter performance and our plans," said Pairote Varophas, vice chairman of Samtel's executive board.