NOK Borrowed ฿500 Million from Mrs. Jurangkool in the Hope of Recovering Business

NOK has made an announcement through SET that the Board of Directors’ Meeting on August 16, 2018, has approved the borrowing of ฿500 million from Mrs. Hatairatn Jurangkool, who is a “close relative” of the major shareholders of NOK

Nokscoot Airlines Company Limited and the entering into an asset acquisition transaction of the listed company and a connected transaction with the total investment value of ฿490 million by Nok Mangkang Company Limited using the loan from BOK to additionally invest by purchasing newly issued shares in Nokscoot Airlines Company Limited.

The investment is in accordance with the conditions of the joint venture agreement between NOK, Scoot Pte. Ltd., Nok Mangkang Company Limited and Pueannammitr Company Limited, Nokscoot Airlines Company Limited which NOK has executed.

 

The financial advisor of the capital increase plan of Nokscoot Airlines Company Limited has an opinion that the capital increase of of Nokscoot Airlines Company Limited will create an opportunity for NOK to be able to expand the budget airline business by increasing the flight and increasing the service routes, which is a connectivity, making NOK to be able to expand the origin and destination.

Thus, Nokscoot Airlines Company Limited will be be able to increase its market share, the service routes that are popular in South East Asia, which is the region that have high amount of population and the expansion rate of passenger that need travelling services.

It is expected that when the capital increase is completed and the process of increasing plans and decreasing expenses in operation in accordance to the management of NOK plan, Nokscoot Airlines Company Limited will have the opportunity to recover its operation result to be positive and expand the growth of income and create sustainable profit.

The interest rate of this loan is 6% per annum and tenor is no longer than 12 months.