BANGKOK, 26 May 2017: Thai Airways International PCL says it has decided against maintaining its capital share in Nok Air PCL (Nok Air) through the subscription of new share issue.
Nok Air increased its capital to counter a lack of liquidity and to provide additional funding to continue operations. Current shareholders were given the first option to buy the new share issue.
The announcement, released by the airline, Thursday, followed a board of directors meeting, 21 May, when the board decided against subscribing to the new shares after Nok Air’s board approved the new issue last April.
THAI’s board made its decision based on a study of the “suitability and value”.
It took into account the study and input from the board as well as considering the objectives of the airline’s transformation plan. The board concluded it was not the right time to increase its investment in Nok Air.
This will result in THAI’s percentage stake in Nok Air being reduced as other investors are given the option to buy the shares offered to THAI.
The board said it would still support Nok Air in its role of a shareholder to enable the airline to make a full recovery and achieve sustainable growth. The airline is not reducing its investment in the airline in real terms, but the percentage it holds will automatically reduce as it did not take up the offer on the issue of new share.