Union Footwear injected new life

Originally focusing on shoe manufacturing, Union Footwear said in the filing to the Stock Exchange of Thailand that board resolved spend approximately Bt280-Bt300 million for the new venture. The venture will be bought from Saha Union Plc, its largest shareholder who holds a 45.38 per cent stake in Union Footwear.

 Meanwhile, the remaining Bt100-Bt120 million would be used to pay outstanding liabilities.

 "The capital increase was for the company to resolve the

successive loss from the shoe business and to remain active as a listed company," said Songsak Thampimakwattana, managing director.

 Under the resolution, the company's registered capital will be increased from Bt200 million to Bt600 million. A number of 40 million shares will be issued. The new shares will be offered to existing shareholders at the ratio of 2 new shares to 1 existing share at Bt10 apiece. The share subscription period would be within December 20-25. Any shares left from the subscription will be allocated to Saha Union.

 Following the change in the business, the company would also change its name and logo in response to the new business.

Earlier, Union Footwear said that it would stop the shoe manufacturing business about this year's end, following huge losses in the past three years due to high competition as well as rising production costs.

- The Nation