Thai Airways International Public Company Limited (THAI) stated that THAI’s Board of Directors decided not to increase capital in Nok Air Public Company Limited (Nok Air), which lacks liquidity and needs additional funding to continue operations. Following the meeting on 12 April 2017, it was agreed that a Company representative would be sent to submit a vote on capital increase in Nok Air, which would open up opportunities for other shareholders to increase their shareholding. During this meeting, THAI’s Board of Directors did not yet decide whether or not to subscribe to new shares in Nok Air because a study had to be conducted on suitability and value prior to additional investment.
On 21 May 2017, a THAI Board of Directors Meeting was held to consider subscription of new shares in Nok Air. THAI’s Board of Directors took consideration of the report prepared by the special task force that studied suitability and value for additional investment in Nok Air, given the Company’s current situation. With consideration to this factor, additional information, and opinions as well given that the transformation plan is still under implementation, THAI’s Board of Directors deemed that under the Company’s current situation it was not the right time to increase investment in Nok Air. Therefore, THAI’s Board of Directors concluded that the Company will not subscribe to new shares in Nok Air, regardless that the Company’s percentage of shares in Nok Air would eventually reduce.
Even though there will be no subscription to new shares, the Company will continue to contribute as a shareholder and grant support for Nok Air’s eventual recovery and sustainable growth. A Company representative who is a member of Nok Air’s Board of Directors has been assigned by THAI’s Board of Directors to oversee and assist Nok Air through to successful completion of the transformation plan as soon as possible.