TTA buys Unique Mining Services

The move follows TTA's investment in a coal-mining business in the Philippines and is part of its strategy to diversify from dry bulk shipping.

TTA shares yesterday closed at Bt29.25, up 7.34 per cent on the day.

Managing director ML Chandchutha Chandratat on behalf of TTA yesterday informed the Stock Exchange of Thailand that its 99.99 per cent-held Hermelin had agreed to acquire shares of Unique Mining Services (UMS) and warrants issued by UMS from two major shareholders - Phaibul Chalemsaphayakorn and Chaiwat Cruecha-em - in the amount of 52.86 million shares and 20.79 million shares, respectively, at Bt23 apiece.

The combined stake is about 48.46 per cent.

Phaibul is chairman of the board and Chaiwat is managing director of UMS.

In addition, Hermelin has agreed to buy 3.22 million UMS warrants, equivalent to 5.55 per cent of the remaining total, from Chaiwat at Bt14.6579 apiece.

Based on the acquisition of UMS's shares and warrants, the transaction is valued a combined Bt1.74 billion.

TTA also stated in its filing that Hermelin expected to conclude the transaction this month, after a shareholders' meeting approves the deal and all the conditions stated in the share-purchase agreement between Hermelin and the two major UMS shareholders are met.

Assuming the transaction goes through, the agreement requires Hermelin to make a mandatory tender offer for all UMS shares from the remaining shareholders and all UMS warrants from the remaining warrant holders.

Meanwhile, UMS informed the authorities that the total number of shares and warrants to be purchased from other remaining shareholders and warrant holders would not exceed 78.31 million shares and 54.86 million warrants.

UMS's share price climbed yesterday to close at Bt21.50, up 8.04 per cent from the previous day. Its warrants closed at Bt13.70 per unit, a rise of 16.1 per cent.

UMS, which was established in 1994, imports coal to serve the demand of major industrial customers and for distribution to small and medium-sized industrial buyers.

It has been a listed company in the Market for Alternative Investment since 2004.

The company reported a consolidated first-half net profit of Bt191.5 million on revenue of Bt1.39 billion.

Hermelin's registered capital is Bt100 million. It used to operate a marine transportation business, but became a dormant company after it sold the MV Hermelin in 2005.

Now engaged in holding activities, it will change its name to Athene Holdings.