Friday, October 15, 2010

KTB offers to sell 10% stake in Nok Air to THAI for Bt220m

According to Krungthep Turakij newspaper, a THAI source said the bank had recently sent a letter to THAI on the matter and the proposal will be valid until November 30.

The source said THAI was considering the proposal but thought the price was too high when compared with its investment of Bt99.6 million for a 49.8 per cent stake in Thai Tiger Airways.

THAI sent a proposal to the bank in April and August to buy 5 million KTB shares in Nok Air at a price of Bt13 each to boost its shareholding in Nok Air to 49 per cent from the present 39 per cent.

THAI executive vice president for strategy and business development Chokchai Panyayong said THAI was evaluating the KTB proposal as well as Nok Air's business plan and business risk factors. THAI wants to raise its shareholding in Nok Air but the price proposed by KTB was as high as THAI's share price. Therefore THAI had to study what should be a fair price.

THAI shares closed at Bt42.25 yesterday, up 3.68 per cent from the previous day.

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