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UPDATE 1-Thai builder Italian-Thai to issue new shares, omit div
March 20, 2012 / 3:02 AM / 6 years ago

UPDATE 1-Thai builder Italian-Thai to issue new shares, omit div

* To issue 1.68 bln new shares

* Omits 2011 dividend payment (Adds details)

BANGKOK, March 20 (Reuters) - Thailand’s biggest building contractor, Italian-Thai Development Pcl, said it planned to issue new shares and would not pay a dividend for 2011.

It told the stock exchange its board had approved the issuance of 1.68 billion new shares at 1 baht par value.

Of the total shares, around 1.26 billion shares will be allocated through a rights offer to existing shareholders, equivalent to 30 percent of paid-up capital.

The remainder of around 419 million will be sold in a private placement, equivalent to 10 percent of paid-up capital, it said.

The company gave no details on how it planned to use the funds but said upon completion, its registered capital would rise to 5.87 billion baht from 4.19 billion baht.

The plan is subject to approval at a shareholder meeting approvals on April 27.

Late last month, Italian-Thai posted a 2011 net loss of 1.7 billion baht ($55.3 million), turning round from a 298 million baht net profit it made the previous year.

Analysts remain underweight on the company’s performance given its weak balance sheet and gloomy earnings outlook.

It is leading a huge $50 billion project to build a port and industrial complex in neighbouring Myanmar but there are growing doubts about the feasibility of the venture.

On Monday, Italian-Thai stocks ended down 2.5 percent at 3.88 baht. The overall market was flat.

$1 = 30.725 Baht Reporting by Ploy Ten Kate and Viparat Jantraprap; Editing by Alan Raybould

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