BTS seeks fund for investment in new routes
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BTS Group Holdings Plc's board of directors resolved to set up an infrastructure fund worth Bt50-Bt60 billion, as the company seeks funds for investment in four new mass transit projects.
The company said in a statement to the Stock Exchange of Thailand that it will sell the net farebox revenue of Bangkok Mass Transit System Plc to an infrastructure fund. The company is in the process to apply for the permission from the Securities and Exchange Commission.
BTS intends to subscribe to one third of the fund, of which value is expected to be at least Bt50 billion. Meanwhile, BTSC - the subsidiary - will still be the operator of the skytrain system and remain under the company's control.
. "The primary utilisation (of the proceeds) is to prepare BTS group for new investment opportunities in the 4 mass transit routes which the government is currently expediting the process," the company said.
The company asked the Stock Exchange of Thailand temporarily halt its share trading in the afternoon session.
In the filing to the exchange, BTS said that its board of directors is convening on a significant matter which should affect the share price.
Before the trading halt, BTS share price increased 4.80 per cent from the previous closing to Bt6.55.
Against some 600,000 shares exchanged hands daily during Nov 1-6, over 2 million shares were traded during Nov 7-8.
