STOCKS / DEBT RESTRUCTURING : Asia Hotel to resume trade

STOCKS / DEBT RESTRUCTURING : Asia Hotel to resume trade.

NUNTAWUN POLKUAMDEE

Shares of Asia Hotel Plc will resume trade on the Stock Exchange of Thailand on Jan 22. The company, whose shares have been suspended since 2002, will be transferred from the rehabilitation sector to the tourism and leisure service sector after having restructured its operations.

SET president Patareeya Benjapolchai said Asia Hotel had met criteria to resume trade, including posting a net operating profit for three consecutive quarters.

As of Sept 30 last year, the company also had positive shareholders' equity of 931.78 million baht, with auditors offering an unqualified opinion on the company's 2005 audited financial statements.

Total assets at the end of 2005 were 4.3 billion baht, with accumulated losses of 1.1 billion and a net profit including restructuring gains of 1.89 billion. For the first nine months of 2006, the company had revenues of 1.05 billion baht and operating profits of 234.98 million.

Asia Hotel successfully reduced its debt from 4.3 billion in 1999 to 2.86 billion at the end of 2005. At the end of June 2006, debt totalled 2.56 billion baht.

Mrs Patareeya said the Techaruvichit group remained the largest shareholder of the company, with 26.84 million shares, or 83.89% of paid-up capital.

The group will be under a silent period for the next 12 months, and can sell only 25% of its stake in the first six months and an additional 25% in the next six months after the resumption of trade.

''ASIA shares have been suspended for five years, and in the past, the company had a number of related transactions. Investors should closely follow the company's disclosures before making a decision on investment,'' Mrs Patareeya said.

The company owns the 16-storey, 601-room Asia Hotel on Phaya Thai Road in Bangkok. Subsidiaries include the 320-room Asia Pattaya Hotel and the Asia Airport Hotel, with 234 rooms and 84 serviced apartments. The company also owns Zeer Property Co, the developer of the Zeer IT Center and Zeer Rangsit shopping centre in Pathum Thani.

Its shares last traded at 4.60 baht. Trading limits will be lifted on the first day.

Bangkok Post
Friday January 12, 2007