Thoresen Thai Agencies shareholders reject capital increase plan
Shareholders of Thoresen Thai Agencies Public Company (TTA) has tanked a capital increase plan for the purpose of renewing the company's dry bulk fleet, Seatrade Asia online reports.
Last Friday, 70% of shareholders at a EGM voted to approve the capital increase plan, falling 5% short of the 75% required by the Thai Public Limited Company Act.
“We regret that the proposed capital increase was accepted by almost 70% of our shareholders but did not pass, as it had been designed with the aim of building long term value and returns by allowing all shareholders to co-invest in TTA's future success,” said ML Chandchutha Chandratat, president and ceo of TTA.
The proposed fleet renewal programme for TTA would allow the company to benefit from purchasing low priced assets while the industry remains in a downturn ahead of an anticipated improvement in 2014.
“We still believe that the current environment offers a compelling case for investment in dry bulk shipping and oil and gas services, and will now begin a process of evaluating how and if such investments can be structured while still garnering attractive returns,” Chandratat said.
