NFC Fertiliser will not seek de-listing after all
Embattled NFC Fertiliser Plc (NFC) has changed its mind about de-listing from the stock market, according to chief executive officer Nuttaphob Ratanasuwanthawee.
"We reached the conclusion that we will not de-list the company's stock and our stock is now listed under the non-performing group," he told Thai-language news agency Bisnews. Early this year, Nuttaphob had said that NFC's stock would be de-listed without seeking to rehabilitate the company because its major shareholders were barred from a tender offer to purchase remaining shares from the stock market. According to Stock Exchange of Thailand (SET) regulations, listed companies with shareholders' equity below zero have two choices - immediate de-listing from the bourse or rehabilitating their businesses. The company is among 17 firms listed under the non-performing group, which includes Datamat, Bangkok Steel Industry, Manager Media Group, Thai Durable Group, Sun Tech Group, Thai Wah and Tanayong. If they can comply with the SET's criteria to restore shareholders' equity to positive territory and restructure 75 per cent of their debts, then they would be allowed to trade in their normal sectors. NFC's stock has been suspended from trading for a long time and its price before suspension stood at Bt1.36 per share. Nuttaphob and his group hold 51 per cent of NFC, while Wichai Tongtang and Direk Chatpimonkul own 26 per cent. Nuttaphob earlier said his firm would substantially scale down its loss-ridden fertiliser production. It had signed a letter of intent with PTT Plc to jointly invest in a distribution business and shift its operations into logistics. NFC plans to run its logistics business at its Map Ta Phut deep seaport in Rayong. Rayong Bulk Terminal Co, the NFC subsidiary that operates the seaport, will also enter the logistics business. In the future, NFC aims to make 80 per cent of its revenue from logistics, with fertiliser production making up the rest. The company fell into financial trouble due mainly to its high debt burden. In the second quarter this year, NFC swung back into the black with a net profit of Bt510.6 million, compared with a net loss of Bt100.2 million in the same period last year. Its first-half net profit was Bt380.8 million, compared with a Bt153.12-millon net loss in the corresponding period in 2005.
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