Nok upbeat on share offer

Nok Air chief executive says the prospect of its current share offering being fully subscribed looks promising.

“The prospect is looking much better, really good, but I can’t say much now due to the SET’s non-disclosure rules,” Patee Sarasin said yesterday.

He was responding to reporters’ questions about progress in the loss-ridden airline’s allotment of 1.2 billion new ordinary shares that will render 1.81 billion baht in fresh capital needed for its ongoing business turnaround.

The offering, approved by Nok Air’s board on Aug 10, will augment the 1.22 billion baht the airline amassed in the previous round of share subscriptions to existing shareholders in May. Current shareholders are entitled to subscribe to the new shares at a proportion of 1.50 baht for each share with a par value of one baht.

Mr Patee said he was not at liberty to divulge details the new share subscription until they are approved at the next extraordinary Nok Air shareholders’ meeting scheduled for Sept 20.

One of the most critical pending issues is whether Thai Airways International (THAI) would turn its back on the new share offer like it did with the previous offering which involved 114 million shares.

In the previous round, the flag carrier cited Nok’s “unclear” turnaround plan and the likelihood of its subscription payment of 588 million baht contributing to THAI’s financial woes.

Nok Air’s major individual shareholders, businessmen Nuttapol and Thaweechat Jurangkool, told the Aug 10 board meeting that they were prepared to take up THAI’s subscription if THAI refused, Mr Patee told the Bangkok Post earlier.

That would see the Jurangkools’ stake in Nok Air rise to over 50%, Mr Patee said.