SMM Announces a Capital Increase for Business Expansion and Liquidity Improvement
After the backdoor of Phelps Dodge, SMM has announced a capital increase for further business expansion in the future and substantial improvement of its liquidity.
Siam Inter Multimedia Public Company Limited (SMM) has reported that its Board of Directors has resolved to grant approval to propose the Shareholders’ Meeting, which would be held on March 29, 2019, to consider approving SMM’s registered capital increase by not exceeding THB 1,803,211,005 from the current registered capital of THB 22,823,211,005 to be THB 24,626,422,010.
The capital increase will be proceed by issuing not exceeding 1,803,211,005 newly issued ordinary shares at the par value of THB 1.00/share, offering to existing shareholders by way of rights offering not exceeding 1,323,211,005 newly issued ordinary shares in June 2019 at the offering ratio of 17 existing shares to 1 new share, while the allocation of not exceeding 480,000,000 newly issued ordinary shares will be offered to public offering.
This capital increase will enable SMM to repay its current debts to the creditors and financial institutions, and the remaining proceeds may be used for further business expansion in the future and substantial improvement of its liquidity.
Phelps Dodge International (Thailand) Limited, SMM’s major shareholder, will not be participating in buying these newly issued ordinary shares to let SMM’s shareholders be able to exercise their rights to the fullest.
On December 21, 2019, the company received an approval for the capital increase of 21,500 million shares for Team A Holding 2 Co., Ltd. (TAH2) to become its major shareholder who is the major shareholder of Phelps Dodge, a company owned by TOA’s Tungkarawakul family.