• 
• 

Natural Park yesterday announced it would launch a public offering of 24.17 billion shares in order to raise its registered capital from Bt12 billion to Bt36 billion. The new shares will be issued to existing shareholders at the ratio of one old share to two new ones. They will be offered for two satang apiece, raising a total of Bt483.4 million. The capital increase is subject to shareholders' approval.

A high-ranking Natural Park executive said the capital increase was necessary if the shareholders' equity was not to be negative.

Higher equity will also strengthen the company financially, as it must set aside a provision of Bt1.062 billion for two civil cases with Thai Ocean Life Assurance and ACL Bank.

Natural Park must set aside Bt360 million for the case involving the insurance company and Bt702 million for the one involving the bank.

Its shareholders' equity stood at Bt1 billion at the end of the second quarter.

"The capital increase is an emergency and a crucial issue, a last-ditch effort. We hope shareholders will understand the situation and help. We shall raise Bt483.4 million if shares are fully subscribed. Then our liquidity will be at a convenient level, and shareholders' equity will remain positive," the executive said.

Listing regulations stipulate that with negative equity, listed companies must undergo debt rehabilitation.

"Should the capital increase fail, we shall need a new solution. It will be impossible for us to regain profitability in the present gloomy outlook, because we do not have revenue from new projects," he said.

Last year Natural Park lost Bt3.397 billion.

It will start realising revenue of Bt3 billion from Siam Serviced Apartments about the middle of next year. Two more projects are under construction: the Novotel Beach Resort Panwa Phuket and the Roi Chak Sam, which should also start generating revenue next year.

The executive added that the company had no plans to launch new projects, because the urgent issue for now was the legal wrangling.