Sea Horse's major shareholder Vorajate Indamra yesterday sold 935 million shares, or 33.63 per cent, at Bt1 apiece in big lots to four investors connected with Boon Anake, an ethanol manufacturer that is Sea Horse's takeover target.

The four buyers are Siritat Rojanapruk, who snapped up 440 million shares, Sakorn Suksriwong with 225 million shares, Jirapan Srinont with 195 million shares and Surachai Suksriwong with the rest.

Late last year, Vorajate acquired 2.12 billion Sea Horse capital-increase shares at a price of Bt0.63, while Somphot Ahunai bought 421 million newly issued Sea Horse shares.

Proceeds from the recapitalisation will finance the company's plan to convert its core business from food to alternative energy by absorbing Boon Anake.

Vorajate said the new partners would boost Sea Horse's image.

After the transactions, Vorajate's Sea Horse stake has been reduced to 45 per cent.

Sea Horse's stock yesterday remained unchanged at Bt3.10 each.

Vorajate reiterated that the deal was initiated during negotiations over Boon Anake as its shareholders were also interested in taking a significant position in Sea Horse.

"I personally know Siritat, who is Boon Anake's major shareholder. Following a tie-up with new partners, I believe that the company will show better earnings. The four investors asked for a silent period of 18 months from the transaction date," he said.

During the silent period following a takeover or initial public offering, major shareholders of listed companies are prohibited from selling their shares.

He confirmed that late last year he joined hands with Somphot to take over Sea Horse as they intended to see the company become viable.

After the completion of the Boon Anake deal, Sea Horse will start construction of the ethanol plant in the middle of this year and complete it in 18 months. The plant's production capacity is expected to be 1.5 million litres per day.

Ethanol producers, who are suffering from a glut of ethanol in the local market, have urged the government to remove both 91- and 95-octane gasoline from the market to boost demand for gasohol.

On Tuesday, Sea Horse's board of directors approved the proposed acquisition of Boon Anake for up to Bt1.32 billion based on the company's book value as of last February 28.

Six ethanol plants are already operating across the country with a combined installed capacity of 855,000 per day, while total utilisation is 750,000 litres per day. Six more producers are due to enter the market by the end of this year.

Siriporn Chanjindamanee

The Nation