1st Nov 2017
All is now well and good at Nok Air, it would seem. The Thai-based carrier’s plan to convince all of its shareholders to inject a sum of 1.7 billion baht in fresh funds has been a complete success. The shareholders have subscribed to 1.135 billion new shares. Nok Air offered each share at 1.50 baht.
By “all of its shareholders”, yes, we do mean Thai Airways International (THAI), which declined to subscribed the last time. The first allotment of Nok Air’s shares was a failure as the biggest shareholder, THAI, refused to subscribe to 114 million shares offered. At the time, THAI said that Nok Air’s turnaround plan is “unclear” and they are not convinced that their subscription of 588 million baht would be paid.
This time though, THAI endorsed a new round of capital injection along with the other shareholders at a meeting held on 20th September, by taking up to 245 million shares at its subsidiary airline worth 367.5 million baht.
THAI was in danger of losing its major stake at Nok Air. Acting President Usanee Sangsingkeo and other senior executives at the airline agreed to go with the latest capital increase and subscribe to Nok Air shares in order to keep their 21.57% share at the budget carrier. This means that THAI will remain the single major shareholder at Nok Air.
In other words, the resignation of Patee Sarasin from the post of Nok Air Chief Executive Officer last month and the consequent appointment of a new CEO (Mr. Yodmani Piya Yodmani took over on 14th September), was enough to clear the last (and probably the only) obstacle to go along with Nok Air’s latest capital infusion.
Before taking over as CEO of Nok Air, Mr. Piya served as deputy CEO and before that as the CEO at NokScoot. NokScoot is a medium-to-long-haul low-cost carrier (LCC) owned jointly by Nok Air and Singaporean Scoot.
In the previous round of share subscription, in May, Nok Air injected 1.22 billion baht of fresh capital. Details of this subscription are yet to be reported to the Stock Exchange of Thailand.