PDI shareholders approved dividend payment of 1.50 Baht/share
PDI shareholders approved the dividend payment of 1.50 Baht per share and issuing 75.33 million free warrants through the rights offering for existing shareholders only. The shareholders also approved an increase in the Company’s capital and the issue of 75.33 million new shares to accommodate future warrant conversions. PDI has a positive outlook for 2018 and will continue to invest more to expand its business.
Mr. Francis Vanbellen, Managing Director of Padaeng Industry Public Company Limited (PDI), said the 2018 annual general shareholder meeting passed a resolution to pay dividends on the 2017 financial performance at 1.50 Baht per share, for a total of 339 million Baht. The shareholder registration for dividend payment will be closed on May 21, 2018.
Moreover, PDI shareholders also approved the issue of 75,333,333 warrants (PDI-W1) to existing shareholders at a ratio of three existing shares held to one free warrant. The warrants have a three-year duration from May 15, 2018 to May 14, 2021 with the exercise price of 33.00 Baht.
PDI will raise its registered capital from 2,260,000,000 Baht to 3,013,333,330 Baht by issuing 75,333,333 new shares with a par value of 10 Baht for a total of 753,333,330 Baht to accommodate the first round of warrant conversion (PDI-W1).
The capital increase will give PDI a stronger financial position for future expansion and investment. This will also expand the company’s cash flow and readiness to invest in potential projects in the future, which will generate more profits and build long-term value for shareholders.
Mr. Vanbellen noted that the Company has a positive outlook for 2018, with a projection of satisfactory revenues and net profit. The 2018 target might not match the Company’s 2017 earnings, when global zinc prices soared sharply and the Company earned good returns on its inventory of low-cost zinc ores. This year, PDI’s revenue and net profit will come from renewable energy through PDI Energy. Presently, PDI has solar farms in Thailand and overseas (Japan) with a combined capacity of 50 megawatts and the target to expand the capacity to invest in 100 megawatts more by the end of this year.
Last year PDI ceased its conventional zinc operations and transformed its business model into a zinc trading business in 2018. The zinc business transformation since early this year will support PDI in reaching its zinc sales target of 50,000 tons per year.
“The Company has enjoyed very good business performance and retained earnings, and this gives us a solid financial position with free cash flow ready to invest in new projects. We will continue to explore new investment opportunities which will be viable and earn good returns. Our focus remains renewable energy, waste management and materials as well as acquiring attractive businesses,” Mr. Vanbellen said.
PDI’s 2017 performance was very good, with its net profit hitting a 10-year record high and the third highest in the Company’s 33-year history. The Company posted a net profit of 905 million Baht in 2017, rising 89% from 2016.
General Information
PDI, or Padaeng Industry Public Company Limited, was founded April 10, 1981 and listed on the Stock Exchange of Thailand with a registered capital of 2,260 million Baht. PDI was a zinc mining and smelting company for over 30 years. In 2014, PDI reassessed its business structure in anticipation of a shift to sustainable business, with the objective to increase eco-efficiency and to foster growth. The Company is structured in three business units: PDI Energy – providing energy mainly from renewable sources; PDI Materials – providing added value materials from recycled materials; and PDI Eco – providing waste management solutions for complex industrial waste.