raises capital to finance the purchase of Khanom powe

Khanom Electricity Generating Co. will seek approval from its extraordinary shareholders meeting that the company negotiate and purchase the Khonom power plant from the Electricity Generating Authority of Thailand (EGAT) as resolved at its board meeting yesterday. The Khanom power plant has the generating capacity of 824 megawatts located at Khanom district, Nakhon Srithammarat province. The plant is worth about Bt20,000 million. The company will also seek its shareholders' approval for the financing of the purchase in line with the following procedures: 1. The debt/equity ratio will be 3:1 for the debt incurring of Khanom Electricity Generating Co and the capital incrase of Electricity Generating Plc (EGCOMP). That is Khanom Electricity will secure loan of about Bt15,000 million, while EGCOMP will raise the capital to invest in a 99.99% stake of Khanom Electricity Generating Co worth not exceeding about Bt5,000 million. 2. The of Khanom Electricity Generating Co will be as follows: 2.1 Issue and offer secured debentures domestically for general public and/or as a private placement worth not exceeding approximately Bt7,500 million. 2.2 Issue and offer debentures for international investors worth not exceeding US$100 million or about Bt2,500 million. 2.3 Secure syndicated loan worth about US$200 million or about Bt5,000 million. 3. EGCOMP will raise its registerd capital by issuing 130 million new shares at a Bt10 par from the existing 400 million shares to 530 million shares. New shares will be allocated as follows: 3.1 A total of 40 million new shares will be offered to its existing shareholders at the ratio of 10 old shares to one new shares at Bt30 apiece. If there are any shareholders renounce their rights to subscribe to the shares, they will be allocated to EGAT. The closing date of the registrar book for rights to subscribe to new shares will be set later. 3.2 Not more than 80 million shares will be offered as a public offering. The selling price will be determined using the conditions of the market by the company's authorized directors. 3.3 A total of 10 million shares will be reserved for the warrants which will be issued for sales to the directors, executives, and employees of EGCOMP and its subsidiary. The exercising ratio is 1:1 at the price of Bt15 per share. EGCOMP said that the purpose of the capital increase and the use of proceeds are to purchase the capital increase shares of Khanom Electricity Generating Co of about Bt5,000 million. The remaining Bt1,000 million will be used for future business operations of the company and its affiliates. In addition, EGCOMP will purchase a 5-0-80.2-rai (2080.2 square wah) land in the North Park project located at Vipavadi Rangsit Rd., Thung Song Hong Sub-district, Don Muang, Bangkok worth Bt188,671,440. The land will be used to construct the company's office building. EGCOMP said that the transfer fee will be paid by the purchaser. The contract will be signed on June 30, 1995. The seller of the land is North Park Real Estate Co Ltd. Translated by the Nation