Surabhon Kwunchaithunya, Vice Chairman of Country Group Holdings PCL (CGH), said the board agreed to propose the capital increase program during its shareholders meeting to raise registered capital by 2,566,229,121 baht (from 4,021,637, 396 baht to 6,587,866,517 baht).

The 2,566,229,121 newly issued shares, with a par value of 1 baht, will be allocated to existing shareholders at a ratio of 1 old to 1 new share at 1.30 baht each. The company will propose the capital-increase agenda for approval during its shareholders meeting on March 11, 2015. It believes the newly issued shares’ offering price will prove quite attractive for existing shareholders because of the lower price compared to the market.

“This capital increase will raise funds for the company’s working capital and cash flow. CGH will have its strengthened capital and financial status. The extra cash flow will be used to fund CGH’s business and investment expansion, which will generate good returns to shareholders and cope with the upcoming AEC at the end of the year. This will better build the company’s potential and profitability,” Surabhon said.

Meanwhile, the company has set an extraordinary general shareholder meeting for March 11, 2015 at 2 p.m. for consideration of the capital increase scheme and its new share allocation.