Briefs
Rice-pledging price to be set at Bt13,500 a tonne
The government plans to cut the rice-pledging price to Bt13,500 a tonne for the next harvest season starting in late October, according to the result of a meeting between the Commerce Ministry and three farmers associations. That price would be 40 per cent higher than the cost of production, which is currently Bt8,200 a tonne.
The pledging price should be finalised next week. Viboonlasana Ruamraksa, director-general of the Internal Trade Department, said that setting the price at Bt13,500 a tonne of white paddy rice would reduce the government outlay for the next harvest season. The government will also create other measures to reduce spending on the pledging programme.
Economic role for Culture Ministry
Prime Minister Yingluck Shinawatra has pushed the Culture Ministry to play an economic role, helping boost the country’s income and competitiveness by cashing in on cultural capital, according to the ministry’s permanent secretary, Prisna Pongtadsirikul.
She added that the ministry needed to shift its role from focusing on cultural conservation to capitalising on culture for economic development.
ThaiBev rating lowered
Standard and Poor’s Ratings Services yesterday lowered the rating of Thai Beverage by one notch to “BBB-” on higher leverage.
The rating agency expects ThaiBev’s higher debt and lower cash-flow adequacy to weaken its financial risk profile over the next 24 months, after the completion of the company’s debt-funded acquisition of a stake in Fraser and Neave.
General Engineering goes for restructuring through sale and acquisition
General Engineering has restructured its businesses through the sale of Aqua Corporation and the acquisition of McTric Co to expand its construction business.
Tawat Anantanavanich, the managing director of General Engineering, said the company, after approval from the board of directors, would sell its 315 million shares in Aqua at Bt0.80 apiece and 250 million Aqua warrants at Bt0.51 apiece to ADM Capital through Siam Media for a total of Bt379.5 million. General Engineering will realise capital gains of Bt24.65 million from the sales.
The company will also acquire a 32.65-per-cent stake, or 800,000 shares, in McTric – which runs a construction engineering business and develops a mechanical electricity system – for Bt184 million.
Tawat said the acquisition, which is expected to be finalised this month, would expand the company’s business to related businesses like construction and also diversify its businesses. It would start realising income from McTric from August, he said. The company would also offer 2 billion new shares at Bt0.75 a piece to nine investors through private placement. The proceeds will be used to finance its production expansion and new businesses and projects.
SEC files complaint with DSI against fund execs
The Securities and Exchange Commission has filed a criminal complaint with the Department of Special Investigation (DSI) against Maris Tarab, former managing director of ING Funds (Thailand) and former fund manager of TU Dome Residential Complex Fund, for allegedly breaking the securities law.
Complaints were also filed against Burim Chombhubol, another former TU Dome fund manager, Bania Co and Suthapa Khemaprueth, managing director of Bania Co.
In August 2009, the SEC imposed a three-year probation on Maris for failing to perform his duties prudently and professionally in the best interest of the fund’s unitholders. The probation covered his status as approved property fund manager/securities company executive/mutual fund manager/private fund manager/investor contact.
The SEC said that investigation showed that TU Dome Fund managed by ING Funds failed to comply with the fund scheme and regulations under the Securities and Exchange Act BE 2535 (1992). The findings led to sanctions imposed on ING Funds, Maris and Burim.
From January 5 to March 27, 2009, Maris and Burim endorsed the fund’s Bt10.4-million payment to Bania. It was claimed that the payment was made for the turnkey contract of construction and improvements of certain areas in TU Dome Fund assets, which was, however, incorrect and caused damage to the fund. The evidence further indicated that they, with support of Bania and Suthapa, had allegedly falsified documents and evidence concerning money withdrawal to mislead others, the SEC said.
WPP launches Geometry Global
The advertising firm WPP is launching Geometry Global – its geographically strongest activation agency. In Thailand, the transformation is expected to take 60 to 90 days.
Geometry Global will be an autonomous network within WPP. With headquarters in London and New York, it comprises Grey Group’s activation agency, G2; Oglivy & Mather’s OgilvyAction; and JWTAction, JWT’s marketing and experiential agency. JWTAction is itself a joint venture between JWT and OgilvyAction in the United States and will retain its autonomy within Geometry Global.
Geometry Global will provide its clients more resources, talent and a bigger geographical footprint than the agencies could have achieved separately. Geometry Global will operate in 56 markets and employ almost 4,000 activation specialists.
Fifth Tune hotel opens in Philippines
The Tune Hotels Group has widened its presence in the Philippines by opening a property in Mindanao island’s Cagayan de Oro city.
Mark Lankester, Tune Hotels Group CEO, said the group was proud to have marked its fifth footprint in the country.
“Thanks to the booming economy and its healthy tourist arrivals, we are very pleased with our performance here since we opened our very first Philippine hotel in Angeles City, Pampanga, more than two years ago. At least five more Tune Hotels are scheduled to be opened in the country over the next 18 months, including in Davao City in Mindanao and Quezon City in Manila,” he said.
Tune Hotels is part of Tune Group, a business conglomerate co-founded by Tony Fernandes and Kamarudin Meranun, who are the group CEO and deputy group CEO respectively of Asia’s largest low-cost carrier AirAsia.
True Technologies in Shanghai
Golden Pearl Global Ltd, a subsidiary of True Corporation, will establish True Technologies (Shanghai) Co next month.
True Technologies (Shanghai), which has registered capital of Bt61.9 million and a paid-up capital of Bt12.38 million, will be a new subsidiary of True Corp by association.
This transaction will not be considered a major acquisition or the disposing of assets as per the regulations of the Capital Market Supervisory Board and the Stock Exchange of Thailand.
Henkel eyes emerging markets
German chemical manufacturer Henkel aims to generate net sales of 10 billion euros (Bt407 billion) from emerging markets by the end of 2016 along with a 60-per-cent increase in the share of employees compared with 55 per cent in 2012.
Meanwhile, Henkel Thailand aims for above-average growth and stronger brand positions, the company’s president Surachet Tanwongsval said.
Emerging markets, including Thailand, accounted for 43 per cent of Henkel’s total sales in 2012 compared to 37 per cent in 2008.
S&P sheds light on govt links
A report by Standard & Poor’s shows that most governments support the credit profiles of oil and gas firms. S&P credit analyst Andrew Wong said government’s influence on ratings depended both on the strength and durability of the company’s role and its sovereign link.
These influences typically boost market positions and enhance scale in domestic economies. However, the report noted, governmental links can also open the door to negative government intervention, which can weaken profitability, leverage and cash flows.
