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Media Release – Placement of New Shares by Magnecomp Precision
Technology Public Company Limited (MPT)
- THB 725.7 million or US17.7 million raised
by placing out 177 million new shares
- Free float increased to more than 15% after
placement
Bangkok, 8 December 2005 – Magnecomp Precision Technology
Public Company Limited (SET: MPT)
has successfully completed a private placement of 177 million
new MPT ordinary shares via book-building
On November
28 2005, Mr. Steven Campbell, CEO of the Company with the
supervision of the Board of Directors decided on the final
price and allotment of shares to participating investors.
The new shares were sold to institutional investors with
leading local asset management companies in Thailand and
reputable foreign institutions at the book-built price of
THB 4.10 per share representing 6.39% discount from the
closing price on November 25 2005.
Although
demand was significantly higher than the 200 million shares
authorized by the shareholders at an offering price of one
notch lower, MPT management decided to place out only 177
million shares and those which are not placed will be subsequently
canceled. This was done with due consideration of all relevant
factors, among others, dilution effect to existing shareholders,
minimum number of shares being held by minority shareholders
to be in compliance with the SET regulations, market conditions
and issuing price.
The
new shares were placed to local institutional and high net
worth investors, as well as foreign institutional investors.
Turnaround Co., Ltd and UOB Kay Hian Securities (Thailand)
acted as the joint financial advisors for the local tranche
while the placement to foreign investors was handled solely
by UOB Kay Hian Securities (Thailand).
Following
the placement, the company’s free float will be increased
from 8.40% to 16.18%. The holding of its major shareholders,
SGX listed Magnecomp International Limited (MIL)’s will
be diluted from 81.25% to 74.35%, while the interest of
its other significant shareholder, Somers (U.K) Limited
will be diluted from 10.35% to 9.48%.
Mr.
Steven Campbell, commented, “We are delighted to have been
able to attract quality institutional investors to this
issue and we wished to thank all parties involved in this
placement. Funds raised from the placement will help strengthen
our capabilities and fuel the growth of MPT”
MPT
has emerged out of this placement with a broader shareholding
structure that will enhance the overall profile of the company.
Most importantly, MPT was able to achieve its primary objective
of achieving the free float level of at least 15% as stipulated
by the Stock Exchange of Thailand.
Upon
registration of the new shares, MPT’s paid up capital will
increase from THB 19.07 billion to THB 20.84 billion. The
proceeds from the placement will be used to finance expansion
of production capacity, enhancing of engineering capability
and for working capital. The additional capacity and capability
that will come on stream to support MPT’s corporate objective
of maintaining its position as one of the world’s leading
producer of suspension assemblies for the global hard disk
drive industry.
### End of release ###
About Magnecomp Precision Technology Public Company
Limited
Headquartered
in Ayutthaya, Thailand, Magnecomp Precision Technology Public
Company Limited manufactures hard disk drive suspension
assemblies with a number of subsidiaries specializing in
precision stamping, chemical etchings, tooling and die,
supporting its core business. MPT has manufacturing facilities
in both China and Thailand, with a Research and Development
Technology Center located in California, close to its major
customers in USA. For more information, please visit the
MPT website at www.MagnecompPrecision.com.
Forward Looking Statement
This
release contains forward-looking statements that involve
risks, uncertainties and assumptions. All statements other
than statements of historical fact are statements that could
be deemed forward-looking statements. The forward-looking
statements are based on current management expectations,
and actual results may differ materially as a result of
several factors, including: levels of operating expense
and product cost; supply and demand conditions in the data
storage industry; overall economic conditions; changes in
product and customer mix; pricing trends; actions by competitors;
the pace of development of new markets; successful entry
into new markets by the Group; and other factors discussed
in periodic reports filed with the SET. These forward-looking
statements should not be relied upon as representing the
company's views as of any subsequent date and MPT undertakes
no obligation to update forward-looking statements to reflect
events or circumstances after the date they were made.
Media Contact
Magnecomp
Precision Technology
162 Phaholyothin Road, Ayutthaya 13170 Thailand
Tel: (66)3521-5225
Fax: (66)3521-5345
Peter Lim, peterl@magnecomp.com
Yong Kok Hoon, khyong@magnecomp.com
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