Sea Horse backs off
Despite shouldering accumulated losses, Sea Horse decided recently to venture into a diversified business, focusing on ethanol production.
However, its board decided last week to back away from the planned acquisition of Power Energy, which plans to build a Bt2.6-billion ethanol plant, because the Stock Exchange of Thailand warned that the acquisition might be considered a backdoor listing. Director Somphote Ahunai said Sea Horse had planned to purchase Power Energy's shares for Bt150 million. However, the bourse said Power Energy's assets might be worth more than Bt150 million if the Bt2.6-billion investment plan were taken into account. The acquisition of Power Energy's shares would be considered a backdoor listing if the plant's construction were complete, as Power Energy has not declared the specific source of funds for the investment. Sea Horse has not yet decided how it will pursue its plan to invest in the ethanol business. It could consider another takeover or a joint venture with another company, he said. Sea Horse has been an exporter of frozen and canned seafood for 25 years. It has retained losses of Bt400 million since the last quarter of 2005, mainly as a consequence of rising oil prices and appreciation of the baht. If the baht becomes more stable, the company will recover its seafood business from the loss, said managing director Chatree Mahattanadul. It targets revenue of Bt800 million from its seafood business this year, representing flat growth from last year. Chalida Ekvitthayavechnukul, The Nation
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