TAKEOVER TARGET
SET airs doubts on Power Energy
The Stock Exchange of Thailand (SET) has raised doubts about Power Energy, the firm targeted for a takeover by Sea Horse, after finding it was involved in television programming
and various types of training programmes.
In a statement, the stock exchange referred to information from the Business Online website that indicated Patthana Wathasin was Power Energy's former name, and its registered capital was increased from Bt5 million to Bt600 million early this year. The SET wondered how Sea Horse could make a decision in only a few days about such a substantial investment. Sea Horse's board of directors on Tuesday approved the company's purchase of a controlling stake in Power Energy, an ethanol manufacturer, for Bt150 million. Construction of Power Energy's plant, with a daily production capacity of 400,000 litres, will be completed in early 2008. The takeover announcement was made only a few trading days after Sea Horse informed the SET the company was considering the possibility of a new investment but could not be specific about the precise investment method. The firm also received a capital-increase share payment of Bt1.64 billion from two new major shareholders - Vorajet Intamara and Sompoch Arhunai - on October 17. Shortly after Vorajet and Sompoch subscribed to 93.53 per cent of Sea Horse, the company said it would shift its core business away from frozen seafood to high-profit businesses, including energy and high technology. Given these several dubious points, the stock exchange has asked Sea Horse to provide additional information, such as how the firm began to consider the investment, the name of the seller, the date of due diligence, the date for signing the share purchase agreement and the payment date. The SET said Sea Horse was required to clarify the benefits it would receive from the investment compared with entering into the business alone. The SET has demanded a list of Power Energy's shareholders and management structure and a summary of its key financial data for the past three years. A list of all those involved in the deal that might make it a connected transaction is also required. Krungthep Turakij newspaper reported Power Energy's major shareholder, with 99.95 per cent, is Supin Rojanapruek, wife of Sirithat, who is Bangkok First Investment and Trust's major shareholder, while Vorajet is also another major shareholder in the finance house. The SET said all additional information was due tomorrow. Sea Horse posted a second-quarter net loss of Bt22.87 million, compared with a net profit of Bt15.17 million in the same quarter last year. Sea Horse stock yesterday jumped 14.87 per cent, closing at Bt4.48.
|
