to change par value, double capital

Singer Thailand Plc (SINGER)'s board of directors has resolved to change its par value from Bt5 to Bt10 per share in accordance with the SET's announcement. In a more significant move, the board also decided to double its registered capital in a rights issue to raise fund to set up 15 new sale outlets next year, reduce its debt and increase profit margin. The board must seek approval from SINGER's shareholders meeting for the above resolutions. To eliminate odd shares left from the change of the par value, the board resolved that directors and executives offer to sell the odd shares to or buy them from shareholders to make it even. At the same time, the board will seek approval from the shareholders meeting to rectify the section on the registered capital in the company memmorandum. SINGER will raise its registered capital from Bt135 million at Bt10 par value to Bt270 million. It will issue 13.5 million new common shares at the par value of Bt10 apiece. All of new shares will be offered to its SINGER's existing shareholders at the ratio of one old share to one new share (1:1) at Bt10 per share. The shares subscription and payment period is scheduled from 9.00 a.m. on February 26, 1996 to 4.30 p.m. on March 1, 1996. The date of closing its registrar book for the right to subscribe to the new shares is from noon on February 2, 1996. SINGER said it will use part of the fund from the recapitalization to purchase plots of land and have buildings constructed on them under a plan to set up 15 new branch offices next year. It will use the remaining fund to repay its loans, thus reducing its interest burden. SINGER will gain benefits from its capital increase as follows: - To expand its branch offices which will make its services and products more conveniently accessible by its customers and directly increase sales revenues. - To reduce its interest burden and increase profit margin. SINGER's shareholders will also benefit in that its dividend will increase. The company has a policy to pay a dividend accounting for 65% of net profit after tax. The new shares subscribers will enjoy the right to receive dividend, beginning with the interim dividend payment from its operation of 1996. Translated by The Nation