Thai Airways in talks with foreign airlines to take a stake
Move is a part of airline’s capital restructuring, with the aim to resume trading on SET by June 2025
Thai Airways International Pcl has begun talks to attract foreign airline industry partners to invest through a targeted private placement as part of its capital restructuring exercise, a source revealed.
On September 30, the company submitted its securities offering report and filing for capital restructuring to the Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand (SET).
Currently, Thai Airways is conducting a roadshow and following market procedures to inform existing shareholders about the debt-to-equity conversion process, with rights expiring in November.
As part of this conversion, Thai Airways will offer up to 9,822,473,626 newly issued common shares, including any shares remaining from the voluntary conversion, to designated parties as per the plan:
– Existing shareholders prior to the restructuring (excluding those whose ownership would subject Thai Airways to foreign legal obligations)
– Thai Airways employees
– Selected individuals through a private placement
The capital increase process for Thai Airways is expected to open for subscription in December, marking a crucial phase as it will allow "new investors" to acquire shares and become key shareholders in Thai Airways’ post-rehabilitation future.
Piyasvasti Amranand, chairman of the Rehabilitation Plan for Thai Airways, previously mentioned that offering shares through a private placement is a strategic way to attract new investors, ideally with aviation expertise. He expressed a preference for knowledgeable shareholders who can steer Thai Airways away from bureaucratic tendencies and prioritise professional management.
Since no local airlines currently outperforms Thai Airways in management and revenue, finding an international partner is seen as essential. A decision on the investment proportion will depend on shares remaining after the debt-to-equity conversion.
Under the rehabilitation plan, Thai Airways aims to complete its capital restructuring by December 31. Following this, the company will submit its 2024 financial statements to the SET in early 2025 and expects to file a petition with the Central Bankruptcy Court to exit its rehabilitation plan and resume trading on the SET by June 2025.
