TTA issue to raise capital by Bt9.9bn

The capital increase is aimed at mobilising Bt9.9 billion of new investment capital to be allocated to the expansion of dry-bulk shipping vessels as well as to cash in on the growing potentials of offshore oil and gas services.
Chandchutha Chandratat, TTA managing director and chief executive officer, said the company would open booking of the newly issued shares from January 15-21. If there remain unsubscribed shares, the company will allocate them to specific investors under a private placement scheme. The offering price of shares under |the PP scheme will not be lower than 90 per cent of the market price.
The company will hold an extraordinary general meeting of shareholders on December 14 to consider the matter.

STRUGGLE TO SURVIVE
”Over the past 18 months, we have struggled to survive the recession and maintain our three core businesses, especially the dry bulk shipping business,” Chandchutha said.
In its statement submitted to the Stock Exchange of Thailand yesterday, the company said the global funding and liquidity |constraints and the ongoing economic slowdown had an adverse impact on various businesses in which the company is involved. |For example, more companies |in the dry-bulk-shipping sector |are experiencing financial difficulties and are being forced to restructure.
Interesting investment opportunities are now emerging in TTA’s cyclical core businesses, it said. Prices of dry bulk vessels have significantly declined from two years ago and are expected to bottom out in 2013 before gradually recovering along with freight rates and the global economy.
Additionally, high oil and gas prices and increasing exploration and production spending are increasing demand for offshore oil and gas services in both shallow- and deep-water regions.