IN Brief : TFUND sale delayed

IN Brief : TFUND sale delayed.

PROPERTY :The SET-listed factory developer Ticon Industrial Connection said yesterday that it would delay a planned property fund sale worth up to three billion baht to mid-2007 due to the Bank of Thailand's capital controls.

"We will postpone it," said managing director Virapan Pulges, referring to a plan to sell new shares in Ticon Property Fund (TFUND) in the first quarter to raise between 2.5 billion and three billion baht. Ticon holds 33% of SET-listed TFUND.

"The share sale would be difficult. The reserve requirement will make returns less attractive," he said.

The central bank rule enacted on Dec 18 requires 30% of non-trade related foreign exchange inflows to be deposited interest-free with the bank for one year. The rule was intended to halt speculation on the baht.

Ticon shares closed yesterday on the Stock Exchange of Thailand at 17.20 baht, down 20 satang, in trade worth 18.73 million baht. TFUND shares were unchanged at 9.00 baht, in trade worth 1.86 million baht.

TBANK bill pays 5%

FINANCE :Thanachart Bank has introduced a nine-month bill of exchange offering an annualised interest rate of 5%.

The minimum investment is 100,000 baht, and is open to retail investors and institutional investors, with the exception of financial institutions and foreign companies. For details, contact a Thanachart branch or call the contact centre at 1770.

PTTEP weighs funding

FINANCE :PTT Exploration and Production Plc is considering issuing bath-denominated debentures worth 3.5 billion baht in the first quarter of this year, according to president Maroot Mrigadat.

The amount has been approved by shareholders. Details of the term and interest rate are subject to consideration, based on market conditions.

The company said the funds would be used for investment in exploration projects in Burma, Algeria, and development projects in Oman and Vietnam.

PTTEP shares closed yesterday on the SET at 93 baht, up 2.50 baht, in trade worth 480.8 million baht.

Egco complies with FBA

ENERGY :Electricity Generating Plc (Egco) said yesterday that it was in compliance with the draft amendments of the Foreign Business Act.

According to a company statement, Egco is a Thai legal entity. The percentage of voting shares held by foreigners as of Jan 9 was 44.72% of all outstanding shares.

Under the company's articles of association, foreign shareholdings in Egco shall not exceed 45% of the total shares.

Thailand Securities Depository Co, the company's share registrar, is assigned to control the foreign shareholding to keep it within the limit.

Egco has 14 directors, four of whom are foreigners, and each director has one vote. As such, foreign directors have voting rights of 28.6% on the board of directors.

Shares of Egco (EGCOMP) closed yesterday on the SET at 95 baht, up 1.50, in trade worth 83.22 million baht.

Border estates promoted

INDUSTRY :The Federation of Thai Industries (FTI) has asked the Industry Ministry to support a plan to create industrial estates along the country's borders in order to solve a labour shortage in manufacturing, according to FTI chairman Santi Vilassakdanont.

He said Thailand's manufacturers currently needed about 200,000 workers but were having trouble finding them. Of the total, 60,000 are required by the textile and garment industry and 50,000 by electronic and electrical goods makers.

The FTI has proposed special promotional privileges for businesses using foreign labour and engaged in export-import activities.

Mr Santi said that the project, if approved, would focus on border areas with Burma, Laos and Cambodia. The first estate would be situated at Mae Sot, Tak.

Gecal clarifies strategy

FINANCE :GE Capital Auto Lease (Gecal) clarified yesterday that it would continue to offer used-car financing services.

The GE Money subsidiary has transferred its new-car financing business to Ayudhya Capital Lease Co as part of a strategic partnership between GE and the Bank of Ayudhya. Gecal stopped booking new-car financing as of Dec 31.

But the company said it would continue to support used-car financing, car refinancing and motorcycle financing services in the future.

8-day bills yield 4.97%

DEBT MARKET :The Bank of Thailand yesterday sold 20 billion baht worth of eight-day bills for a weighted average accepted yield of 4.97178%. Accepted bid yields ranged from 4.92% to 4.99%, with the bid coverage ratio 1.83 times.

Bangkok Post
Friday January 12, 2007