Daison will manufacture and distribute air-conditioner parts and products under the management team of the Aeromaster Group, which is operated by Sitthisak Jongudomlerk. However, Daison - established in August - has no operations at present.

In a statement submitted to the Stock Exchange of Thailand yesterday, Thai Heat Exchange director Therawat Nuengnong said the investment was aimed at expanding its business

in the air-conditioner market and increasing its exports under the Sanyo brand, a leader in the sector.

Thai Heat Exchange will also gain the right to produce and distribute air-conditioners in the local market under the Aeromaster brand.

According to the purchasing plan, Thai Heat Exchange will first buy 5,000 existing common shares with a par value of Bt100 from Sarinda Jongudomlerk for Bt25 each, representing 50 per cent of total paid-up capital. This will cost Bt125,000.

Daison has paid up its own capital at Bt25 per share.

In addition, Thai Heat Exchange will pay Bt375,000 for 5,000 common shares at Bt75 per share, if Daison calls fully paid capital at Bt100 par value.

In March, Daison is expected to increase its capital to Bt80 million from the current Bt1 million. Thai Heat Exchange will then be obliged to buy 395,000 new common shares at Bt100 apiece, representing 50 per cent of total paid-up capital. That purchase value will be Bt39.5 million.

 Daison will later purchase assets such as land, buildings, machinery and office equipment from Aeromaster Group Co Ltd and a subsidiary of Aeromaster operated by Sitthisak and Arunrat Jongudomlerk for Bt132 million.

Last year, these assets generated revenue of about Bt220 million at a utilisation rate of 35 per cent.

In addition, Daison will receive all existing Aeromaster customers, such as Sanyo Electric Co Ltd (Japan), a leading global air-conditioning producer and distributor.