BMCL board okays recapitalisation plan

BMCL board okays recapitalisation plan

The board of Bangkok Metro Plc (BMCL) has approved an 8.55-billion-baht recapitalisation plan to raise funds for new trains and repayment of existing debt of the SET-listed subway operator.

In a filing submitted to the SET yesterday, BMCL said its board had on Thursday approved an increase in registered capital to 20.5 billion baht from 11.95 billion.

Under the plan, 8.55 billion newly ordinary shares will be issued at a par value of one baht apiece through a rights offering (RO) and private placement.

Of the total, 2 billion baht will be allocated to existing shareholders in proportion to their holding at one baht each in a ratio of 5.975 current ordinary shares to one new share.

Subscription date and payment for the new shares will be Dec 2.

The record date to determine RO allocation will be Oct 18 and to collect shareholders's names after book closure will be Nov 19.

Major shareholder Ch. Karnchang Plc (CK) will be allocated 4.2 billion new shares at one baht apiece for payment of principle and also the interest of loans borrowed from it.

The 2.35 billion other new shares will be allocated to financial institution creditors of the company, also at one baht each, for repayment of interest and loan rescheduling fees to the creditors, with subscription date next March 31.

The creditors are Krungthai Bank, TMB Bank, Bank of Ayudhya and Thanachart Bank.

BMCL president Chaiwat Utaiwan said the capital increase plan remains subject to approval at a BMCL shareholders' meeting next Friday.

As of last month, CK held 16.67% of BMCL's issued shares.

Any newly issued shares left after the first round of allocation to existing shareholders will be offered to them in excess of their rights.

Oversubscribed shares will be allocated to existing shareholders expressing an intention to oversubscribe only when there are new shares left after all shareholders have fully subscribed to their existing rights.

The board also approved a whitewash waiver for CK that would raise its holding in BMCL to 38.32%, but the issue is also subject to endorsement from next week's shareholders' meeting.

A whitewash waiver is the waiver of rights of independent shareholders to receive a mandatory takeover from an investor and its concert parties for the ordinary shares of a company not already owned or controlled by them.

Shares of BMCL closed yesterday on the SET at 1.13 baht, down seven satang, in trade worth 151 million baht.

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