M-Link seeks turnaround in new sectors

M-Link seeks turnaround in new sectors

Power plants, leasing, transport new focus

M-Link Asia Corporation Plc, a diversified investment company, will attempt a strategic turnaround this year with new businesses in power plants, leasing and transportation.

The company is downsizing its handset and accessories distribution segment, which has a low margin, to engage in new lucrative businesses.

The company initially plans to secure two refuse-derived fuel (RDF) power plants, one each in the North and Northeast, next month. Revenues from the two RDF power plants are expected to realised later this year, said M-Link president and chief executive Prasit Srisuwan.

Moreover, it is in talks with Thai and Laotian partners to form a joint venture to bid for a hydropower plant in Laos in the second quarter of this year.

For leasing, Mr Prasit said a new subsidiary in which M-Link owns 51% would be set up in the second quarter, aiming to provide auto hire-purchase and leasing services in Thailand and other Asean countries.

"We are likely to sign an agreement with potential partners for services in Cambodia next month," he said.

The company also plans to engage in premium ground transportation services by June.

M-Link is also prepared to provide a system of infrared cameras for detecting gas leaks that could serve the logistics business in Cambodia, Laos, Myanmar and Vietnam. The first contract is expected to be signed with PetroVietnam in March.

At least 50 professionals will be recruited to help build the leasing and transportation businesses.

Mr Prasit said these business diversification plans would create sustainable revenue over the next few years. M-Link hopes to turn a profit this year after a 200 million baht loss last year.

M-Link has 1.5 billion baht in new funds raised from a new share issue to investors through private placement. The money will be used to support diversification.

The company was founded by Yaowapa Wongsawat, a sister of ousted prime minister Thaksin Shinawatra. She is wife of Somchai Wongsawat, who was premier in 2008.

Anusorn Amornchat, the husband of Yingluck Shinawatra, used to be M-Link's president but resigned after Ms Yingluck became prime minister.

Last November, Samart Corporation Plc and national police chief Somyot Pumpanmuang acquired more than half of the company after the shares were offered by the Wongsawat family.

The share sales signalled a gradual exit for both families from their vast business interests in the telecommunications industry.

The restructuring reduced the Wongsawat family's shareholding in M-Link from 28.6% last year to less than 5%. The family plans a complete exit this year, said a source close to the deal.

Mr Prasit became chief executive of M-Link earlier this month, replacing Mrs Yaowapa's daughter Chinnicha.

Mr Prasit said the company would be renamed after a shareholder meeting in the middle of this year to reflect its new business direction.

MLINK shares closed on the Stock Exchange of Thailand at 3.70 baht, down four satang, in trade worth 26.3 million baht.

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