Picnic Corp goes under the hammer
Krung Thai Bank is open to new takeover proposals for Picnic Corp after the group of investors led by Wichai Thongtang failed to make its payment in time to conclude the pending deal.
Sanguan Treejareonwiwat, managing director of Picnic, said the management and KTB met yesterday to discuss the situation after the group of investors, led by Wichai and Pimol Srivikorn, could not come up with Bt1.7 billion on Thursday as scheduled.
Thursday was the deadline for the group to pay Picnic's creditors in exchange for a majority stake in the company. After parking the amount at Thanachart Bank, the group said it would only transfer the sum once Picnic's directors resigned.
However, the company was |only notified of this request on August 25 and could not hold a board meeting in time, Sanguan said.
"Next month, KTB will start receiving proposals from other investors," he said. "The resignation of Picnic's board is a requirement under the rehabilitation plan, but the process takes time because the chairman has to call a meeting first. After the meeting, we need the approval of the Central Bankruptcy Court."
Sounding somewhat surprised at the change, Sanguan said the previous three or four meetings with the group had gone smoothly. All the papers were ready, but at the last minute the group failed to pay for its stake.
Sanguan noted that though the deal has collapsed, the Wichai-led group is still eligible to join the open bid. KTB is open to bids from any party, and a few buyers have shown interest in taking over Picnic, he added.
"As the managing director of Picnic, KTB has given me the job of welcoming all interested investors," he said.
Meanwhile, the Wichai-led group will hold a press conference on Monday to quash rumours that it intentionally withdrew its offer to take over Picnic Corp.
A financial adviser of the group, who asked not to be named, said the consortium did not transfer the money on Thursday as scheduled to avoid investment risks. The money is still parked at Thanachart Bank ready for transfer, but the board of directors has to resign first as per the rehabilitation plan, he added.
Picnic, a distributor of liquefied petroleum gas (LPG), is saddled with debts worth Bt7.4 billion, 80 per cent of it owed to KTB and United Overseas Bank. Picnic entered the rehabilitation process in December 2009. Earlier, Samart Corp and ThreeSixtyFive showed interest in taking over the firm, which was founded by the Lapvisuthisin family.
