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Wednesday 3 November 9:59 PM
Thai Finansa Fund To Invest THB400 Mln In Siam PaperBANGKOK (Dow Jones)--Finansa PCL (FNS.TH), a Thai financial holding firm, said Wednesday its Siam Investment Fund II L.P. will invest THB400 million to buy a 13% stake in Siam Paper PCL, a Thai printing and writing paper manufacturer. The Fund is Finansa's private equity fund which aims to invest in local firms. It had initial investment capital of $57 million. "The invested funds will be used to finance the construction of Siam Paper's second plant, which has been halted since the Asian financial crisis," said Vorasit Pokachaiyapat, the managing director of Finansa. Following the completion of the plant, expected around the first quarter of 2005, Siam Paper's annual production capacity will be boosted to 142,000 metric tons from 22,000 tons currently. The expansion in capacity is estimated to need funds of around THB5 billion. Finansa will contribute THB400 million and the remainder will come from existing shareholders and bank loans. However, further details weren't immediately available, Vorasit said. Siam Paper also plans to list on the local bourse some time next year, after having delayed its listing plans since the 1997 crisis, he added. He said that in December Finansa will launch the Siam Investment Fund III L.P. worth $75 million-$100 million to invest in local firms, and another fund worth $20 million-$25 million to invest in Vietnam. Meanwhile, the company also plans to spend THB110 million early next year to acquire Krungdhep Thanathon Asset Management Ltd., a wholly owned unit of Bangkok First Investment and Trust PCL (BFIT.TH), Vorasit said. Finansa reiterated that its plan to merge its unit, Finansa Credit Ltd., with Bangkok First Investment and then upgrade it into a bank is still being considered by the central bank. The firm submitted an application to the central bank July 28 and expects the decision to be announced by year end, Vorasit added. He noted that the company maintains its full year revenue target at the same level as last year's THB1.5 billion, with net profit of around THB450-500 million. -By Maytinee Wasumadee, Dow Jones Newswires; 662-266-0744; djnews.bangkok@dowjones.com -Edited by David Bottomley
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