Thailand Business Roundup
Raising the Future Fund
The Thai government announced it was hoping to raise the level of the 100 billion baht Thailand Future Fund (TFF) after overseas investors expressed interest in committing capital to this vehicle.
Among those interested is the China Investment Corporation (CIC). CIC is the Chinese sovereign wealth fund which oversees part of that country’s foreign exchange reserves.
The Thai government said the infrastructure fund could be expanded from its current planned 100 billion baht if there is sufficient interest from overseas, especially as Thailand needs around 1.7 trillion baht to fund infrastructural projects over the next five years.
The fund is scheduled to be launched in May or June this year and is expected to be listed on the SET and managed by mutual funds.
IPO offering by leading plastic bag producer
TPBI Pcl, which ranks as one of the world’s major plastic bag and film producers, announced plans in February to sell 25 percent of its registered,
paid-up capital through an initial public offering (IPO) in March.
The proceeds will go towards expanding business expansion overseas, including joint ventures and/or mergers and acquisitions. The company is looking primarily at opportunities in Asean and Africa.
The company has total registered and paid-up capital of 400 million
baht and runs two production plants in Thailand with a total production capacity of 64,920 tonnes per annum. The company exports to Europe, Japan and Australia.
Thai Airways plans to sell assets to reduce costs
Thai Airways International Pcl (THAI) recently announced plans to sell its office and residential real estate properties, both in Thailand and overseas as part of its cost reduction plans.
This will reduce what the company terms unnecessary maintenance costs and overseas expenses. Thai Airways management expects to raise around one
billion baht from the sales, which will be used to repay debt.
There are 19 properties for sale, nine of which are offices in Thailand. The remaining 10 comprise staff residences in London, Jakarta and Copenhagen, and two in Singapore and sales offices in Sydney, Rome, Madrid, Hong
Kong and Penang. Apart from property sales, Thai Airways said it plans to rent out space in its buildings to generate recurring income.
The flag carrier posted an operating loss of 18.1 billion baht for the first three
quarters of last year.
CP All not a favourite with money managers
Following a scandal involving three senior executives of CP All Pcl, Thailand’s largest convenience store chain, who were charged with insider trading in December 2015, the Association of Investment Management Companies (AIMC) announced it would not be investing any more of its funds in the company. AIMC has 25 members and investment funds worth almost 400 billion baht.
Bandid Nijathaworn, CEO of the Thai Institute of Directors, a private
Organization, said the case is a good reminder that for some companies, corporate governance remains a challenge and cannot be taken for granted even with a top-tier firm.
