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BANK
OF ASIA PLC & UOB ASIA LTD
LEAD THB 1,800 MILLION
SYNDICATED CREDIT FACILITY TO THAI LISTED
MAGNECOMP PRECISION TECHNOLOGY PUBLIC CO LTD
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BANGKOK,
September 30, 2005 – Bank of Asia Plc. (“BoA”)
and UOB Asia Ltd, majority owned by Singapore-based United
Overseas Bank Ltd (“UOB”), announced today its syndicated
credit facility for Thai-based Magnecomp Precision Technology
Public Company Limited (“MPT”) was fully subscribed. Proceeds
from the facility are to refinance existing borrowings and
fund capital expenditure to increase hard-disk suspension
manufacturing capacity to meet the increasing market demand.
UOB
Asia Ltd is the mandated arranger and BoA is the sole underwriter
for the THB 1,800 million five-year facility, which attracted
commitment from two leading Thai banks at the close of syndication.
In addition to BoA, other members of the syndicate are BankThai
Public Company Limited and TMB Bank Public Company Limited.
MPT,
a 81.3% subsidiary of Magnecomp International Limited (“MIL”),
is one of the major hard-disk suspension manufacturers.
MPT manufactures 3.5-inch, 2.5-inch, 1.8-inch and 1-inch
hard disk drives and is also the sole supplier to four out
of five 1-inch hard disk manufacturers.
In Feb
2005, MIL agreed to merge its Data Storage Division (“DS
Division”) into KR Precision Public Company Limited (“KRP”)
and changed its name to MPT. The merger has strengthened
MPT’s balance sheet and improved cash flow from operations.
During the first six months of 2005, post merger, MPT shipped
a record high of 138.7 million units, a growth of 80.4%
compared to same period last year.
Speaking
at the loan signing ceremony at BoA Building today, Mr.
Kim Choong Wong, President of BoA said, “We are delighted
to be given the opportunity to lead arrange the financing
for this landmark transaction. MPT is one of the leading
suspension assemblies producers with a strategic manufacturing
base in Thailand, strong profitability, and is an ideal
candidate for the Thai syndicated loan market. We expect
to attract more corporate borrowers of similar calibre as
MPT.”
“We
are pleased with Bank of Asia’s effort in enhancing MPT’s
profile in Thailand’s financial community,” said Mr. Albert
Ong, President of MPT. We thank the three banks for their
confidence and support in our expansion plans. This credit
facility will help fund our expansion in Thailand to grow
with the rising demand from the HDD industry.”
According
to Trend Focus, the recording head demand will grow from
885 million units in 2004 to 1,385 million units in 2006,
largely spur by demand in consumer electronics applications.
The syndicated credit facility matures in September 2010,
and has been priced at sub-prime lending rate, payable quarterly.
This is an inaugural fund raising exercise in the Thai banking
market by Magnecomp Precision Technology Pcl.
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.
About Magnecomp International Limited
Magnecomp
manufactures hard disk drive suspension assemblies under
MPT for major hard disk drive manufacturers and performs
precision stamping, commercial tooling and die, and assembly
in Mansfield Manufacturing Company Limited (“Mansfield”)
for a variety of customers worldwide. The Group became a
publicly traded company on the Singapore Stock Exchange
in January 1998. Magnecomp has manufacturing facilities
in China and Thailand and a research and development Technology
Center facility close to its USA customers. More information
about Magnecomp can be found at http://www.magnecomp.com.
About United Overseas Bank Ltd
UOB
is a leading bank in Singapore that provides a wide range
of financial services through its global network of 385
branches, offices and subsidiaries in 18 countries and territories
in Asia-Pacific, Western Europe and North America. It has
banking subsidiaries in Singapore, Malaysia, Indonesia,
Thailand and the Philippines.
About Bank of Asia Public Company Limited
Headquartered
in Bangkok, Bank of Asia Public Company Limited a member
of UOB Group provides commercial bank, investment bank and
financial services to corporate and consumer customers in
Thailand. BoA is going through an integration and business
transfer process with UOB Radanasin Public Company Limited,
and will be renamed to United Overseas Bank (Thai) Public
Company Limited before the end of 2005.
*** End of Release ***
For more information, please contact:
Boonchai
Asavaarunotai
Corporate Affair
Bank of Asia Plc.
Tel: 66-2-343-4960
Fax: 66-2-286-5149
T.S.
Ng
VP Finance & Investor Relations
Magnecomp Precision Technology Pcl.
Tel: 66-35-21-5225 x 3333
Fax: 66-35-27-1861
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