Steel plans bond issue

By The Nation
Published on September 15, 2008

Mill Con Steel Industries, a manufacturer and distributor, plans to issue convertible debentures worth Bt1.2 billion this year for business expansion and debt repayment.

Managing director Sittichai Leeswadtrakul said last week that the company would consider the proper context for the issue, for although the current situation was not encouraging, Mill Con Steel believed the bond would go down well with institutional investors due to its strong fundamentals.

The board of directors has approved the issue with a maturity of not more than five years. The company will increase registered capital from Bt572.99 million to Bt859 million by issuing Bt286 mil¬lion ordinary shares with a par value of Bt1 apiece reserved for debenture conversion.

Sittichai said the funds would be used to expand business and pay debt, allowing Mill Con Steel to reduce interest expenses.

"The company's capital will be strong when we issue the convertible debentures," he said.

The board also approved the issue of warrants to its directors and employees to purchase a total of 5 million newly issued shares, one warrant entitling the holder to pur¬chase one share for Bt5.

Sittichai said warrant trading was awaiting approval from the Securities and Exchange Commission. The warrants are expected to trade on the Stock Exchange of Thailand by the end of the year. He is confident Mill Con Steel's revenue this year will achieve its target of Bt10 billion thanks to the revenue recognition of Burapa Steel Industries, which it took over in the first quarter.

Mill Con Steels thirdquarter performance will not be good as this is the low season in the steel indus¬try, but operating results will recov¬er in the last quarter, he said.

The company posted net profit of Bt155.21 million in the second quarter, an increase of 1,021 per cent from Bt13.84 million in the same quarter last year, and Bt206.23 million from Burapa.

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Steel plans bond issue

Mill Con Steel Industries, a manufacturer and distributor, plans to issue convertible debentures worth Bt1.2 billion this year for business expansion and debt repayment.

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