TANAYONG REHABILITATION
New strategic investors named
Tanayong disclosed its four new strategic investors yesterday after completing its business rehabilitation, and the company's shares are scheduled to be traded on the stock market's normal trading board from December 4.
The developer is currently in the "non-performing group", or in the process of business rehabilitation, as its stock has not been traded. Chairman Keeree Kanjanapas said yesterday that following completion of its rehabilitation plan, the company would have new four strategic investors. They are K2J Holding, owned by the Kanjanapas family, 37.5 per cent; the Dubai Investment Group, 16.5 per cent; Cheng Yu Tung, chairman of the New World Group, 7.5 per cent; and UOB Asia, 10 per cent. Other financial investors will hold 8.5 per cent. He said the new strategic investors would strengthen the company's financial status and real-estate operations. The new investors have global investment portfolios and a large market base. Keeree said Tanayong would thus grow with a stable outlook and depend less on financial lending institutions, because its new strategic investors had a large amount of capital. "The four new investors will boost the company's prospects in the long term, because they will not only invest in Tanayong, but also invest jointly in future projects of the company. They will consider investing in each project on a case-by-case basis. They believe the Thai market will give them returns in the long term," said the chairman. Keeree said Tanayong would have a new management team with new directors as representatives of the new investors. The new team will focus on risk management. With joint investment from new investors, the company will depend less on bank loans. This will allow Tanayong to keep its debt-to-equity ratio at 1.5, from the current 0.3. Managing director Kavin Kanjanapas yesterday said the company would from now on generate a cash flow from existing developing projects. Currently, Tanayong is developing a Bt300-million residential area of 6,000 square metres on Rajdamri Road that will generate Bt20 million a month from rentals. The second project is the 27,000-square-metre Thana City Condominium, worth Bt500 million to Bt600 million. And there are 20,000 Ua Athorn units, worth a total of Bt8.4 billion and which will realise full revenues from 2007-09.
Siriporn Chanjindamanee The Nation
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