Pan Asia to lay off workers, shut down shoe, bag manufacturing operation
Pan Asia Footwear, a member of the Sahapat Group, will shut down its bag and shoe manufacturing operation as of August 31 and lay off all employees because of a lack of orders, the company reported to the Stock Exchange of Thailand.
The company noted that its customers had been reducing orders for the past three to four years at the same time as labour costs were increasing and it had lost purchasing power, resulting in an accumulated loss of income.
Pan Asia has restructured its business from a producer of bags and shoes to a holding company. However, the apportioning of shares remains the same and its subsidiaries are still operating as usual.
QE tapering to have 'little effect' on money markets
A reduction in the US quantitative-easing programme would have little impact on the money markets as they have made adjustments since the signals from the Federal Reserve that it would taper the measure, said Pongpen Ruengvirayudh, deputy governor of the Bank of Thailand for monetary stability.
She added that the BOT had adjusted its investment portfolio for its foreign reserves since Fed began signalling a reduction of QE.
As of August 9, Thailand had foreign reserves of US$172 billion (Bt5.83 trillion) and a net forward position worth $23.7 billion.
InTouch subscribes to Meditech share issue
InTouch, formerly Shin Corporation, reported to the Stock Exchange of Thailand that it had subscribed to a new share issue by Meditech Solution Co, a manufacturer and vendor of eye-blink communication aids for paralytics and other disabled people.
The company has purchased 42,860 newly issued shares from Meditech, amounting to Bt5 million and equivalent to 30 per cent of the paid-up capital.
This investment has been made to encourage small businesses that have potential in information technology, telecommunications and media, along with other related businesses, and will enhance the competitiveness and build the synergy of InTouch Group as well as increase corporate growth, company director Somprasong Boonyachai said.
Ikea issues hazard warning for children's beds
Ikea has asked customers who have a Kritter or Sniglar children's bed to check the date stamp on the label attached to either the headboard or the underside of the bed.
Ikea has received seven reports of breakage of the metal rod connecting the guard-rail to the bed frame. A broken rod could expose sharp metal edges, presenting a laceration hazard. No reports of any injuries caused by breakage of the metal rod have been reported.
Only Kritter beds with date stamp (YYWW) from 1114 to 1322 and Sniglar beds with date stamp from 1114 to 1318 are affected.
Customers with an affected product are asked to contact Ikea customer services toll-free at 02-708-7999 (extension 4004) at the earliest opportunity to receive a repair kit free of charge.
Ikea apologises for the inconvenience.
Sosuco still targeting 3percent sales growth
Sosuco and Group (2008) Co, a manufacturer of ceramic tiles, is confident of reaching its 2013 sales target of Bt2.6 billion, up 3 per cent from last year, although its purchasing power has declined, managing director Kittichai Krikokij said.
He added that the company would focus on the middle to upper market, where demand is still growing by 7-8 per cent on average, while the demand from the low-income market dropped by 10 per cent in the first half of this year.
Proposed AP debenture issue rated
TRIS Rating has assigned a rating of "A-" to the proposed issue of up to Bt1.5 billion in senior debentures of AP (Thailand).
At the same time, TRIS Rating has affirmed the company and current issue ratings of AP at "A-" with "stable" outlook.
The company plans to use the proceeds from the new debentures for business expansion. The ratings reflect AP's proven track record in the residential property development industry, strong business profile, product diversification, and secured revenues from a high backlog, TRIS said.
Proposed Thanachart Capital issue rated 'A+'
TRIS Rating has assigned the rating of "A+" to the proposed issues of up to Bt1.4 billion in senior debentures of Thanachart Capital.
At the same time, TRIS Rating affirmed the company rating of TCap and the ratings of its existing senior debentures at "A+". The outlook remains "stable".
The ratings reflect TCap's position as the investment holding company of Thanachart Group, management control of its core bank subsidiary, Thanachart Bank, through a 50.96-per-cent ownership stake, and the stable stream of dividends TCap receives from TBank.
F&N wins bid for
plot in Singapore CBD
Fraser and Neave Ltd, a 130-year-old property and beverage conglomerate, has won a bid for a commercial plot of land in Singapore's central business district.
FC Commercial Trustee, a subsidiary of F&N, put in the highest bid at 924 million Singapore dollars (Bt22.8 billion), or S$11,974.18 per square metre, according to a statement by the Urban Redevelopment Authority on its website. That was 19 per cent higher than the next bidder, Euland, which offered to pay S$777.78 million.
Average grade A office rents in Singapore rose 4.2 per cent in the second quarter to S$9.03 per square foot (S$97.20 per square metre) per month from the previous quarter, according to Cushman & Wakefield. The office market has started to recover with increase in demand and rents, Cushman said.
Based on the top bid of S$923.95 million, CBRE estimates the break-even for this site will be as much as S$1,900 per square foot, it said.
The 7,603.2-square-metre site at Cecil and Telok Ayer streets was tendered on June 18. The site was offered for sale on a 99-year lease, according to the statement. - Bloomberg
SingTel buying into
India's Bharti Telecom
Singapore Telecommunications, Southeast Asia's biggest phone company, will buy more shares in Bharti Telecom to tap potential growth in India.
SingTel will buy 788,538 shares, or 3.62 per cent, of Bharti Telecom for 383.6 million Singapore dollars (Bt9.448 billion) from MacRitchie Investments, SingTel said in a statement to the Singapore stock exchange.
SingTel plans to spend S$2 billion on acquisitions as growth in wireless earnings slows in Singapore and other countries.
The company has said it is considering increasing stakes in its associates as it taps into the growth opportunities in faster-growing markets in Asia.
SingTel also owns stakes in phone companies including Thailand's Advanced Info Service, Indonesia's Telekomunikasi Selular and Globe Telecom in the Philippines.
Tata Thailand appoints
new sales head
Tata Motors (Thailand) Co has appointed Karanjit Rosha as head of sales and marketing, effective this month.
He will supervise the development of sales and marketing programmes and ensures implementation of solid brand strategies and initiatives to improve sales and marketing for Tata Motors in Thailand.
He joined Tata Motors in 2002 as assistant sales manager for the commercial-vehicle business unit at Tata Motors India.
Charn Issara Development gets company rating
TRIS Rating has assigned the company rating of Charn Issara Development at "BBB-" with "stable" outlook.
The rating reflects the company's acceptable track record in middle- to high-end condominium segment and the recurring income it receives from the hotel and office rental businesses.
These strengths are partly offset by the company's relatively small revenue base, fluctuating operating performance, and relatively high leverage.