The Government of Thailand announced plans to increase its investment in Thai Airways International (THAI) without reinstating the airline as a state enterprise. This decision was confirmed during a Cabinet meeting in Chiang Mai, where Finance Minister Pichai Chunhavajira provided updates on the airline’s debt restructuring efforts.
During the meeting, it was revealed that THAI anticipates raising approximately 44 billion baht through a share rights offering, marking the final phase before the company exits a court-supervised debt restructuring process and resumes stock trading.
The carrier announced that it will offer its 9.82 billion new shares to existing shareholders at a price of 4.48 baht per share, as stated in its exchange filing.
As explained by a Cabinet source, the government has decided to increase its stake to ensure the airline remains the national flag carrier while avoiding direct control.
Despite maintaining its position as the largest shareholder, the Finance Ministry will not be required to increase its stake further.
Currently, the ministry holds 47.9% of THAI shares. After restructuring, including converting debt into equity and adding new capital, the ministry, along with the Vayupak Fund and Government Savings Bank, will collectively own around 40% of the airline. This shareholding structure ensures that THAI does not revert to being a state enterprise.
Finance Minister Pichai announced that the Council of State has sanctioned the recapitalisation, deeming it a legitimate part of the debt restructuring plan. Nonetheless, a debate arose over the ministry’s legal authority to vote on appointing two senior officials to the airline’s debt restructuring board, a decision made during THAI’s creditors meeting on Friday.
While some creditors argued that the ministry’s participation in the debt-to-equity swap effectively changed its status from creditor to shareholder, bankruptcy protection officials clarified that the swap remains incomplete. As such, the ministry retains its creditor status, enabling it to vote.
The airline’s creditors have agreed to convert approximately 53 billion baht of debt into shares, following the conclusion of the subscription period last month. THAI aims to exit the rehabilitation phase by February 2025 and resume trading on the stock exchange by May 2025, reported Bangkok Post.
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