Padaeng Poongsan Metals sold its assets for 228 million baht.
Padaeng Industry Plc reported that Padaeng Poongsan Metals Co Ltd sold its assets to South Korea's Poongsan Corporation Ltd in a 228 million baht deal and intends to use the proceeds for debt repayment.
In a report filed with the Stock Exchange of Thailand, Padaeng Industry Plc, which owns 61.98 % of Padaeng Poongsan Metals Co Ltd (PPM) said that its subsidiary has sold all its assets for US$5.25 million or about 228 million baht to PSMT Corporation, a wholly-owned subsidiary of South Korea's Poongsan Corporation Ltd in an agreement signed recently.
The agreement has been enforced and PSMT takes possesion of all buildings and equipment on the land leased by PPM from the Industry Estate Authority of Thailand.
PPM was established in 1990 under a joint venture agreement between Padaeng Industry Plc and Poongsan Corporation Ltd and commenced its commercial operations in 1993. Its plant is capable of producing up to 15,000 metric tons per year of copper and brass sheets and strips, blank coins and case cups. The company has been particularly hit by the economic crisis and the devaluation of the baht, and has been forced to temporarily idle its operations since February 1999. Proceeds from the sale will be used to repay debts to financial creditors, Padaeng Industry Plc among them.
The sale of PPM assets is in line with Padaeng Industry Plc's strategy to divest from its non core activities. Poongsan Corporation Ltd intends to use this plant to support its Industry activities outside Thailand.