Thursday, February 27, 2020

NokScoot Airlines gets approval for Bt200m loan from its major shareholder

Jan 25. 2020
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By THE NATION

NokScoot Airlines has got the nod to to receive financial aid in the form of a loan of Bt200 million from Hathairat Jurangkool, its biggest shareholder.

Nok Airlines Pcl (Nok) notified the Stock Exchange of Thailand (SET) that the company’s board of directors on January 23 had approved the proposal of its affiliate NokScoot Airlines Co.

According to the contract, the company agreed to pay back the loan within 12 months, or before December 11, at an interest of 6.30 per cent per annum, which is lower than the average 6.9263 per cent per annum (as of January 22, 2020) interest rate of commercial banks for first class customers.

Hathairat currently holds 757.63 million shares in Nok Airlines, or 24.37 per cent, and had granted loans to the company totalling Bt3 billion during 2018-19 in the form of promissory notes for 180 days at an interest of 7.715 per cent per annum. Nok has paid Bt215.25 million per year in interest alone.

Last week the company’s extraordinary meeting of shareholders decided to issue 888,147,358 ordinary shares at a face value of Bt1 per share to existing shareholders on rights basis at the ratio of one new ordinary share for 3.5 existing ordinary shares. The offer price is Bt2.50 per share, with combined value not exceeding Bt2.22 billion. The shares are expected to be offered from February 3-7.

The company’s decision to increase its capital is due to Nok’s substantially weaker financial status in the past few years. In the first nine months of 2019, the company had accumulated a loss of Bt9.55 billion and shareholders’ equity was negative Bt2.7 billion.

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