TTA'S fear of hostile bid eases

In an exclusive interview with The Nation, ML Chandchutha Chand-ratat said the Mahagitsiri family had taken on about a 14-per-cent stake and the company expected that this would reduce pressure from those with hostile takeover plans. The family has indicated that its investment in TTA is for the long term.
“I did not know Chalermchai [Mahagitsiri previously] but had a chance to talk with him after he held a 5-per-cent stake in TTA. We had a mutual understanding that the acquisition was right. His purpose is to invest in TTA for the long term,” Chandchutha said.
If the major shareholder intends to play a management role in TTA after acquiring the right to five director seats, Chandchutha expressed his pleasure due to this group’s straightforward intentions for its investment in the company.
“If the shareholders decide that other people are better able to satisfy them, the board of directors and executives are pleased with such a decision. Simultaneously, we have a duty to make the shareholders aware of the major strategies and outcomes that may arise if a takeover occurs,” he said.
Managing TTA business requires people with knowledge, understanding and networks, as the company operates business overseas and its whole income is derived in foreign currencies. Another issue lies in human-resource management, and the retention of personnel.
Chandchutha said he was pleased to work with all parties. If the shareholders require a change, he is ready to implement it.
He said he had been working at TTA for seven years. Aside from growing the firm’s business, his target is to see it as a company with more financial institutions holding its shares for long-term investment to reduce volatility of its share price. Currently, retail investors own about 90 per cent of TTA and institutional investors hold 10 per cent. Thus the TTA share price can be very volatile.
“Although the Mahagitsiri group has become our major shareholder with a 14-per-cent stake, we need more long-term investment of a stake of at least 40-45 per cent, as TTA business targets long-term returns. If we have long-term investment in the company, it will match the TTA business strategy, “he said.
After he and four others became TTA directors, Chalermchai Mahagitsiri said he and his group offered themselves as directors to protect their own interests and those of small shareholders on the company’s strategies and business plan. As to whether they will tap into TTA management, he could not give an answer, as he needed to learn the business first.
Chalermchai cited TTA business potential as a reason for his investment of more than Bt1 billion in the firm, saying he expected the company to return to the record net profit of Bt8 billion it achieved 2008. TTA has seen its profit decline consistently since then, with last year’s net just Bt100 million.
“Our team conducted a study for a while before I made the investment decision. Our group made it clear that our investment was to generate return for shareholders. So if any investment can make a profit, we will do it. I believe that profit will return to its record high, but that will take some time. It