(Updates with rejection of shareholder meeting in first paragraph.)
June 21 (Bloomberg) -- Thoresen Thai Agencies Pcl, a Thai shipping company, gained the most in almost a month in Bangkok trading after announcing an interim dividend and rejecting a request by a group of shareholders to sell warrants.
The shares rose 2.2 percent to 18.60 baht as of 10:58 a.m. local time, poised for their biggest advance since May 26.
The company will pay a dividend of 0.50 baht per share after shareholders “expressed the desire for an additional dividend,” Thoresen Thai said in a regulatory filing today. The company rejected a request from a group of 75 shareholders to hold an extraordinary general meeting to consider the sale of warrants and a change to the company’s fiscal year, it said.
“In terms of shareholder benefits, while it is true that warrants can be sold before they mature, they are subject to market trends, making any potential cash returns more volatile to shareholders than a normal cash dividend,” the company said in the statement. “The benefit to the company from a warrant issue is also uncertain.”
Thoresen Thai said earlier this month that a group of shareholders claiming to hold about 30 percent of the company’s shares had demanded changes in management. The conflict between minority shareholders and the company was having an “adverse” impact on its business, Chief Financial Officer Thitima Rungkwansiriroj said on June 10.
The aggregate percentage of ownership by the group of 75 shareholders was less than 10 percent of Thoresen Thai’s paid-up share capital, the company said today.
--Editor: Tony Jordan
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