I’m not afraid of hostile takeover, says Assavin
At 61, Mr. Assavin Chingumthornvong, founder and CEO of Thai Industrial & Engineering Service Public Company Limited (TIES), a SET listed construction contractor, is struggling hard to get the company he found based on his visionary twenty-eight years ago out of the global mortgage market stagnant by approaching to two groups of potential buyers with a proposal of 51 percent stake controlling shares.
The group of five investors finally showed their interests and made a tender offer of 0.50 baht a share for a total 200 million shares, an undercut price to its currently trading on the Stock Exchange of Thailand.
“I do not view this as a takeover of company’s controlling rights,” Mr. Assavin said. “The investors are five people with no business relationship in common.”
“There is nothing to worry about the transferring of company’s controlling rights. Besides, I am 61 and I think it’s time to retire,” Mr. Assavin said in an interview.
Thai Industrial & Engineering Service is seeking capital raising after its bank announced ceasing of lending support.
The company began seeing insufficient liquidity in conjunction with the global sees consumption plunge in the credit market.
“We’ve offered new issuing shares to friends who have similar businesses, but everybody is in the same boat. They want to keep cash at hand. So, no one showed interest in a company with two consecutive year loss record,” Mr. Assavin commented.
The board of Thai Industrial & Engineering Service unanimously voted approval for the company’s capital raising to help resolved its liquidity problem.
Thai Industrial & Engineering Service hopes that it sees total revenues of 1.2-1.3 billion baht in 2009, or 10 percent growth from a year go, helped by new winning construction contracts of a hospital project and governmental projects.
The company aims to increase a gross profit to 6-7 percent from 2-3 percent for the same year through cost cuttings.