SANSIRI RECAPITALISATION
Natural Park to back Bt12-bn plan
Sansiri's largest shareholder Natural Park will vote to support its Bt12.61-billion capital-increase plan at an extraordinary meeting of shareholders today.
"After the board of directors meeting considered the pros and cons of the capital-increase plan of Sansiri, the board resolved to approve Natural Park, as a shareholder of Sansiri, to vote in the extraordinary general meeting of shareholders of Sansiri to approve the capital-increase plan and other agenda items of Sansiri," Natural Park said in a filing with the Stock Exchange of Thailand yesterday. Natural Park owns a 24.6-per-cent stake in Sansiri, Viriyah Insurance owns 6.5 per cent, Elite Fund holds almost 10 per cent through non-voting depository receipts, and Viriyah Insurance holds 6.5 per cent. Elite Fund, managed by PYN Fund Management, earlier said it would not throw its support behind the property developer's hefty capital-increase plan because of concern over the 200-per-cent dilution effect. It also proposed to divide Sansiri's recapitalisation into two phases - first, Sansiri would issue 450 million shares to Sansiri president Srettha Thavisin and associates at Bt4.28 each, and later the company would issue another batch of shares and warrants. With the issuance of 450 million shares to Srettha and associates, Sansiri will obtain almost Bt2 billion and Srettha and associates will become the company's largest shareholders, with a 23.4-per-cent stake. The shareholdings of Natural Park, Elite Fund and Viriyah Insurance will be diluted to 18.3 per cent, 7.4 per cent and 4.8 per cent, respectively. The property developer's recapitalisation must be approved by a vote of at least 75 per cent of the company's shareholders. Sansiri recently announced it would raise its capital from Bt6.63 billion to Bt19.24 billion by issuing 2.95 billion new shares at a par value of Bt4.28. Of the total shares, 752.9 million will be earmarked for Srettha and his associates, 1.47 billion will be reserved for warrant conversion, and the remainder will be sold to specific investors through private placement. The company will also issue 1.47 billion warrants for free to its existing shareholders at a ratio of one for every two shares held.
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