THAI 'shrugs off' new Nok share offer

Nok Air earlier announced a plan to increase its registered capital from 625m baht to 1.41b. It said 625m of the new shares will be allotted to existing shareholders at a ratio of one existing share to one new share. The shares were scheduled to be booked for purchase from May 16-19 and May 22. However, THAI, which holds a 39.25% stake in Nok Air, decided not to buy the shares, the source said, citing the company's extraordinary board meeting on May 21, a day before the closing date of the share purchase booking. In the meeting, the source said there were debates for and against the purchase of Nok Air shares, but finally they concluded not to buy any because the airline's plan to tackle losses is still unclear. The board also issued a condition that Nok Air must replace its CE Patee Sarasin before THAI would buy any shares, the source noted. The source said the board members who supported buying shares pointed out if THAI fails to raise Nok Air's capital, the budget carrier would seek more capital from a Singaporean partner.<br/>