Thai Airways International's board of directors approved the Bt10 billion capital increase, which needs shareholders' approval at the April 28 meeting.
The price and subscription ratio will be determined later.
THAI President Piyasvasti Amranand said that proceeds from the share offering will be used for general corporate purposes, including to manage its liquidity, finance future aircraft investments, strengthen THAI's capital base, and repay its debts. The Offering is an integral part of THAI's commitment to pursue its long-term growth strategy and to maximise shareholder value.
Despite Bt7.3 billion of 2009 net profit and passenger cabin factor of 82 per cent, Piyasvasti said THAI remains vigilant and continues to monitor its operations closely. The Company is striving to further improve its efficiency and profitability.
THAI is Thailand's premier national airline with a 50-year history and is listed on the Thai bourse. It operates both domestic and international flights out of Suvarnabhumi Airport. Currently the airline operates a fleet of 88 aircraft and serves 70 destinations in 34 countries. It is also a founding member of the Star Alliance.
The Finance Ministry now holds 51 per cent stake in the company. It must subscribe to the new shares to maintain the state holding and maintain THAI status as a state enterprise.
The company appointed Ploenchit Capital as an independent financial advisor to comment on the share allocation to the ministry.
