The Nation (22 November 2007)
Shin Corp on Tuesday signed a share-purchase agreement with Acap Advisory and Orix to sell all shares in its personal-loan provider, Capital OK, to the two companies.
Shin Corp on Tuesday signed a share-purchase agreement with Acap Advisory and Orix to sell all shares in its personal-loan provider, Capital OK, to the two companies.
In a filing with the Stock Exchange of Thailand yesterday, Shin said 74,999,994 shares were sold, representing 99.99 per cent of Capital OK's registered and paid-up capital.
The transaction is worth Bt290 million for the shares alone or Bt990 million if the value of a Bt700-million loan granted to Capital OK by Shin is included.
After the transaction, Acap will own 50.99 per cent of Capital OK, and ORIX will own the rest. Shin expects to receive Bt990 million in cash from the deal no later than December 14.
Orix is an integrated financial-services group based in Japan with assets of US$70 billion (Bt2.37 trillion).
The two purchasers are responsible for securing sources of funding to repay the loan to Shin. If they are unable to find funding in time, the transaction will be cancelled.
Acap and Orix announced last month that they would take over the entire stake of debts in Capital OK from Shin for Bt990 million.
The divestment of Capital OK is in line with the plan of Temasek Holdings- controlled Shin to focus solely on the telecom business, Advanced Info Service.
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