In a report to the stock exchange, the company said the bank would only lend an additional Bt2.8 billion to TCI as working capital on the condition it increased its registered capital. This, TCI announced it would increase its capital by issuing 138.25 million new shares with a par value of Bt10 apiece. Existing shareholders were given the right to buy one new share for every 4.5 existing shares they held, at a cost of Bt4.12 each, for a total of Bt569.59 million.

However, TFI - which had a 24.42-per-cent stake in TCI - said that because of a lack of liquidity, it had no cash on

hand to exercise its right to buy TCI's new shares, and no one else bought the capital-increase shares during the exercise period in January.

"TFI would like to declare that the bank forced Prayudh Mahagitsiri, or the Mahagitsiri Group, to take responsibility for the remaining shares, in order to fulfil its condition for further lending," said the company.

Subsequently, Suvimol Mahagitsiri paid Bt401 million in cash for 97.32 million new shares in TCI, and Thai Asset Management Corp converted debt to equity by accepting 40.94 million shares with a total value of Bt168.7 million.

TFI said that because Suvimol had been forced to buy TCI's capital-increase shares, as a consequence of other shareholders waiving their right to purchase them, there were currently no conditions applying to other shareholders.

After the capital increase, the Mahagitsiri Group's total shareholding in TCI increased from 33 per cent to 39.8 per cent, while TFI's stake in TCI fell from 24.42 per cent to 19.97 per cent.