Delta Electronics Thailand shareholder plans $1.5 billion bond issue
BENGALURU — Delta Electronics Thailand said on Tuesday that its major shareholder, Delta Electronics International (Singapore), is seeking to raise US$1.5 billion through
Delta Electronics Thailand announced on Tuesday that its largest shareholder, Delta Electronics International (Singapore), plans to raise US$1.5 billion through bonds exchangeable for shares in the Thai company. The bond issuance will consist of $500 million due in September 2027 and $1 billion due in September 2031. The 2027 bonds will have an initial exchange price of 266.8 baht per share, which is a 15% premium over the reference price, while the 2031 bonds will have an initial exchange price of 301.6 baht ($9.08) per share, representing a 30% premium.
The bonds will be exchangeable for existing Delta Electronics (Thailand) shares owned by the Singapore-based shareholder, a subsidiary of Taiwan-listed Delta Electronics Inc. Singapore holds 42.85% of Delta Electronics (Thailand)'s shares. If all exchange rights are exercised at the initial prices, the bonds would convert into approximately 172.1 million existing shares, accounting for around 1.38% of the company's total issued shares.
The $1 billion five-year bonds can be redeemed at 99.25% and 98.51% of the principal after 1.5 and three years, respectively, from the issuance date. The funds raised from the bond issuance will bolster working capital and support future business expansion.
Written by urgent.news from Bangkok Post Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
