clarifies capital increase plan

Electricity Generating Plc (EGCOMP), in a clarification to the Stock Exchange of Thailand (SET), said that as the Cabinet has approved that the Electricity Generating Authority of Thailand (EGAT) sell the Khanom power plant worth about Bt17 billion, the company has to carry out the following procedures: 1. Appoint the commitee to assess the value of the asset in line with the government regulations. The process, said EGCOMP, will take at least one month. 2. While carrying out the first procedure, the company will study various alternatives for the fund mobilization to finance the purchase based upon the assumption of the projected price. EGCOMP said that the Khanom Electricity Generating co will be the purchaser of the Khanom power plant. To finance the purchase, the company must consider setting the appropriate ratio of the financial structure between capital and debt so that the fund mobilized is sufficient for the purchase. Khanom Electricity Generating Co will attract fund from loans, while EGCOMP will mobilize fund from the capital which it will consider various ways. The capital increase plan, as stated in the news report, is one of its options for the mobilization, said EGCOMP. 3. When the commitee finish apprasing the asset value, the price as well as the electicity charge in the trading contract, and the structure of the fund mobilization must receive approval from the Cabinet. 4. The committee, EGCOMP, and Khanom Electricity Generating Co must arrange the meeting to acknowlege and approve on the results of the price assessment, the electricity charge in the trading price and the fund mobilization method. 5. Arrange an extraordinary shareholders' meeting to seek approval on the capital increase, and the carrying out of the purchase transaction. 6. EGCOMP will mobilize fund as planned and will use the proceeds to increase capital in Khanom Electricity Generating Co which will be combined with the debts of the latter to finance the purchase. At present, EGCOMP said it cannot specify the specific date of the aformentioned procedures because in carrying out the detailed plan, there may occur some variables which can always cause changes as the plan has to deal with many agencies. However, EGCOMP said that the Cabinet required that the transfer of the asset must be completed by September 30, 1995. Translated by the Nation