Posted on 30 Apr 2012
Sahaviriya Steel Industries board has approved the issuance and offering of THB 1,650 million convertible debentures and approved the capital increase under a general mandate, to strengthen the Company's capital structure and support increasing working capital needs as a result of business expansion. The company continually assesses various relevant funding options, including sales of new shares in SSI UK to strategic investors.
Mr Win Viriyaprapaikit group CEO & president of Sahaviriya Steel Industries Public Company Limited said that "With the successful start up of SSI Teesside with the first steel slab being produced on April 18th 2012, SSI has achieved another major milestone. Following the convertible debenture plan approved by the Extraordinary General Meeting of Shareholders on September 22nd 2011, the Board of Directors today approved to proceed with the issuance and offering of convertible debentures. It also approved the capital increase plan via a general mandate. These will allow the company greater flexibility in strengthening its capital structure and raise additional working capital to support the expansion of production capacity."
The offering of the THB 1,650 million convertible debentures will be to shareholders whose names appear in shareholder list register on September 30th 2011. The offering period will be from May 15th 2012 to May 21st 2012. There will be remaining THB 600 million convertible debenture available for offering to other investors via private placements, details of which will be announced when available.
Mr Win added that "Other than the offering of the convertible debentures, the board of directors has considered other possibilities, including a SSI share offering via a general mandate which will be subject to market condition and or, alternatively, sales of new SSI UK shares to potential strategic partners. After completion of the convertible debentures issuance, these other alternatives are to be considered on their suitability and benefit to the company."
