News on 31 May

May 31, 2000 Wednesday

HEADLINE: SCB: SHIN to hold 43 pct of restructured ITV

Siam Commercial Bank Plc said Shin Corporation will emerge as a major shareholder in ITV Plc following its restructuring with 43 pct of the company.
In a statement, Siam Commercial Bank said it tried to resolve ITV Plc's problems by seeking an amendment to the terms of the station's broadcast concession terms in order to seek a listing the company on the SET.
It also explored various options for the company's recapitalisation via a rights issue and bringing in new investors to restore the company's financial health.
"We have given financial support to ITV as we believe the project is viable and beneficial to the general public (but) ITV's financial performance has been weak as a result of the economic recession ... and the bank has tried to resolve ITV' s problems.
"The bank's proposed package for ITV's debt restructuring and recapitalisation follows the Bank of Thailand's directives and the package consists of a debt-equity swap and an injection of fresh capital from new investors.
"The bank's main concern when considering the investment proposals was to secure the potential investor's guarantee of the station's independence and integrity to uphold the spirit of the concession and to have a complete one-time solution to the company's financial situation.
"On this basis, the bank selected Shin Corporation Plc to be ITV's new investor as it is financially strong, is a publicly-owned company in the telecom business, and should be in the best position to operate future digital TV and telecom technology."
ITV's debt and capital restructuring package calls for an increase in the company's paid up capital to 4.5 bln baht.
After the capital increase, the new shareholding structure will be: SCB 43 pct, Shin Corporation 39 pct and existing shareholders 18 pct.
ITV will use the proceeds from the capital increase to pay its creditors' loans and the concession due in 2000.
"After loan repayment, ITV's outstanding debt will decrease to approximately 1.00 bln baht and the repayment terms will be restructured," the bank said.