Bloomberg News

Lee Feed Mill Gains Most Since 2003 on Buyback: Bangkok Mover

January 29, 2012

(Updates shares in second paragraph.)

Jan. 27 (Bloomberg) -- Lee Feed Mill Pcl, a Thai animal feed producer, jumped the most in more than eight years in Bangkok trading after the company said it will buy back its shares at above market prices.

The stock surged 22 percent to close at 4.18 baht, the steepest gain since November 2003. It was the best performer on the 485-member SET Index, which climbed 0.7 percent to 1,076.29.

Earnings at Thai animal feed producers including Lee Feed Mill and Charoen Pokphand Foods Pcl, the nation’s biggest, have climbed as higher sales of poultry and seafood boost demand. Lee Feed plans to spend as much as 500 million baht ($16 million) to purchase 100 million shares from existing shareholders, it said in regulatory filing today. The company will offer to buy those stocks at 5 baht each, 45 percent higher than yesterday’s closing price.

“The share price should climb further, close to the offering price in the share repurchase program,” Jitra Amornthum, the head of research at Finansia Syrus Securities Pcl in Bangkok, said by phone. “The company is also signaling that the current stock price is lower than it perceives” as fair value.

Lee Feed Mill’s cash has more than quadrupled to 665.8 million baht as of Sept. 30 from 148 million baht at the end of 2008, according to a data compiled by Bloomberg. Net income in the nine months of 2011 increased 14 percent to 216.5 million baht, according to the company’s filing.

About 76.2 million shares were traded, 120 times more than the daily average over the past three months, according to a data compiled by Bloomberg. Lee produces foods for pets, livestock and marine animals, according to the company’s website.

--Editors: Chan Tien Hin, Matthew Oakley

To contact the reporter on this story: Anuchit Nguyen in Bangkok at anguyen@bloomberg.net.

To contact the editor responsible for this story: Richard Frost at rfrost4@bloomberg.net


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