Country Group Holdings Public Company Limited (CGH) reminds its shareholders to exercise their new share subscription rights from May 22 to 28. The company expects to raise 3.3 billion baht from the capital increase and is ready to issue free warrants to existing shareholders at a ratio of 12 shares to 1 warrant.

CGH’s Chief Executive Officer, Tommy Taechaubol, said the company plans to utilize the raised funds for its business and investment expansion. The move is to prepare our business’ expansion for the upcoming opportunities from the AEC. We recently bought a 15 percent stake in Padaeng Industry Public Company Limited (PDI) to build up our business strength and diversify its investment risks.

At the company’s 2015 annual general shareholder meeting, Tommy said shareholders had approved an additional 2,993,933,974 baht to increase capital (from 4,021,637,396 baht to 7,015,571,370 baht) by issuing 2,566,229,121 new shares at the par value of 1 baht for existing shareholders at the right offering ratio of 1 old to 1 new share. The share offering price is 1.30 baht each and the share subscription and payment period are from May 22 to 28, 2015.

Furthermore, the company plans to issue free warrants at the maximum amount of 427,704,853 units to its existing shareholders, at the ratio of 12 old shares: 1 warrant with the exercise price at 1.60 baht. These warrants are only for shareholders whose names are on the CGH’s share registration. CGH’s board will set the closing day for share registration after the completion of the capital increase program.

Currently, CGH holds a 24.9 percent stake in MFC Asset Management Public Company Limited, the largest asset management company without commercial bank shareholders, and a 99.09 percent stake in Country Group Securities Company Limited (CGS).

“This capital increase program will help raise funds for CGH’s working capital and cash flow. CGH’s capital and financial status being strengthened which will allow CGH to be able to invest in higher return projects such as mergers and acquisitions. The raised capital will also support the holding company’s structure to expand business both locally and internationally. It will also help us to be ready for opportunities from the forming of the Asean Economic Community by the end of this year,” Tommy said.

In April, the board of CGH had a resolution to approve the company and its subsidiaries’ decision to buy ordinary shares of PDI for 15.01 percent of paid-up capital. It is expected that the share transaction will be completed in June 2015. The investment in PDI, which has a strong financial status and potential, will strengthen CGH and diversify its investment risks. It will also generate additional income from the business’ expansion. The company will continue to look for new investment opportunities that generate high return and support its growth in the future.

This capital-increase program is considered another important step for CGH to achieve its sustainable growth target, solidify the company’s capital base and financial status, and generate good returns to its shareholders. As of May 22, 2015, numbers of CGH Shareholders had already begun subscribing to the newly issued CGH shares. The company reminds all shareholders to participate in this rights offering and be a part of CGH’s sustainable growth.