Charoen Pokphand Foods Pcl (CPF) plans to initiate a Bt38.715 billion capital increase to adjust its financial portfolio to mainly repay loans.
CPF chairman Adirek Sripratak said the company’s board of directors will seek approval from shareholders for the capital increase plan at the ratio of five existing common shares for one new common share at Bt25 per share.
CPF said the capital increase will help strengthen its financial structure.
If shareholders approve the move, the company expects to receive the capital in early August.
It will used the money to repay loans in Thailand and overseas.
The payments will lower the interest-rate burden of the company.
At present, CPF operates in 16 countries and has targeted sales to grow of 8-10 per cent this year.
The growth is expected to be mainly generated from its oversea operations, with a good opportunity for business expansion, it said.
It is expected that overseas business sales will increase from 64 per cent to 70 per cent of the company’s total sale in the next five years.
Given the world economic situation, CPF said it is focused on innovation to reduce costs, increase production efficiency and strengthen competitiveness.
It said it is also focused on human resource development based on strong finances to achieve sustainable growth.