Delta turns focus abroad

Delta turns focus abroad

Delta Electronics (Thailand) is considering the acquisition of a related business abroad, with a deal expected to be concluded this year.

Board director Anusorn Muttaraid said Delta is in talks with two foreign companies about acquiring 100% of one of them.

"If we buy both firms we will need a lot of capital, which is against our policy of borrowing money for acquisitions, so we need to decide on one of them," said Mr Anusorn.

He added its strategy is to acquire an electronics-related business that can help lead Delta to new markets and bring in new product lines with favourable profit margins.

Recently, the company bought an industrial estate in Germany, which already generated 100-200 million baht in profit.

The company expects net profit to continue to grow this year, with a target of 5-10% above last year's 5.41 billion baht.

The net margin is predicted to rise to 13% from 12.6% last year on a higher portion of high-margin sales and improved production costs as well as a recovery in the global market.

Delta is prepared to sign a purchasing contract with an Indian buyer for 100 units of wind turbines following the earlier installation of six units.

Shares of DELTA closed yesterday on the SET at 55 baht, up one baht, in trade worth 325 million baht.

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