IN Brief

TMB still studying plan

BANKING :TMB Bank has yet to finalise its capital-increase plans, Finance Minister M.R. Pridiyathorn Devakula said yesterday.

He played down reports that TMB had proposed raising 35 billion baht, which the bank says would be sufficient for operations over the next three years.

"[The 35-billion-baht] plan is just one of several options. We might not have to raise all of this in one shot, but could raise the amount in several steps," M.R. Pridiyathorn said.

TMB, which posted a net loss of 12.28 billion baht last year, is expected to complete its capital increase by June. It needs to raise funds to meet higher provisioning requirements against its distressed loans under the new IAS 39 accounting standard.

The Finance Ministry is the bank's largest single shareholder with 20.88% of common equity, with Singapore's DBS Bank second at 18.48%. Both the ministry and DBS are expected to fully support the capital increase.

TMB shares closed yesterday on the Stock Exchange of Thailand at 2.08 baht, up two satang, in trade worth 104.06 million baht.

Modest growth for SCCC

INDUSTRY :Siam City Cement Plc projects modest growth of of 2-5% this year, higher than that of the industry which is expected to record flat growth, according to a company executive who asked not to be named.

The executive said the factors that would help to drive the company's growth this year would be existing projects for which it had already won bids, such as the Suvarnabhumi Airport rail link, the new government centre, and the extension of the Ekamai-Rarm Intra express way.

Prospects for new infrastructure projects were low, the company said, while investor confidence remained muted as a result of capital controls and ongoing political concerns.

SCCC estimated that the local cement industry grew by only 2% last year.

SCCC shares closed yesterday on the Stock Exchange of Thailand at 262 baht, unchanged, in trade worth 33.09 million baht.

MBAX debuts Monday

STOCKS :Shares of Multibax Plc will begin trading on Monday on the Market for Alternative Investment under the symbol MBAX, the Stock Exchange of Thailand said yesterday.

The plastic-bag producer and exporter will list 128 million shares with a par value of one baht each. The company made an initial public offering (IPO) of 35 million shares, accounting for 27.34% of its paid-up shares, at five baht apiece.

It said that 150 million baht raised from the IPO would be used to repay long-term debts of around 200 million baht, which would reduce its interest costs. Surf's up for CobraRECREATION :Cobra International Co Ltd, a major water-sport board manufacturer, is investing 332 million baht to expand its local production of surfboards as well as auto parts.

The Board of Investment approved the company's application for promotional privileges yesterday, said Hiranya Sujinai, the BoI deputy secretary-general.

The company plans to produce 300,000 surfboards, mainly for export, and 200,000 units of fibreglass auto parts per year. The investment would create 2,430 job opportunities at its plant in the Amata Nakorn Industrial Estate in Chon Buri.

The company's key export customers are Global Surf Industries Co Ltd and Surf Technicians Inc. Aprilia Co Ltd, Hydrospace Co Ltd and Rotomo Co Ltd are its big clients for fibreglass auto parts.

Cobra provides made-to-order services for global brands such as Starboard, F2 and Mitral. It also has its own brands: Cobra, South Point and NSP. As well, it is an original equipment manufacturer for some brands such as Tets and Roxy.

Apisak heads TBA

BANKING :Apisak Tantiworawong, the president of Krung Thai Bank, has been named the new chairman of the Thai Bankers' Association. Mr Apisak succeeds Khunying Jada Wattanasiritham, the chief executive of Siam Commercial Bank, for the two-year term.

B500m target for DHC

COSMETICS :DHC (Thailand), a Japanese-Thai joint-venture for home-delivered premium cosmetics from Japan, is confident of reaching its sales target of 500 million baht this year through aggressive marketing campaigns with a focus on the provincial market.

President Tassanee Ratanaruengrai said sales would be helped by beauty and health consulting services available through the DHC call centre, which would build up relationships with customers.

She expects the campaigns will lift sales from 450 million baht last year, which represented 25% growth over 2005, and also enlarge the membership base to between 75,000 and 80,000, from 60,000 at the end of 2006

Thailand News : Business News
Bangkok Post
Friday January 26, 2007