Month: December 2016
Message from Managements regarding the SET Index and Business Expansion
21 Dec 2016
In the last few days, we have been approached by a large number of investors including retail, local and foreign institutions, with questions on why ‘GL’ has been excluded as a constituent in the SET100 index following the release of semi-annual review by the SET last week. While we appreciate investors’ concerns, we are not in a position to respond on the matter. Such questions should be directed to the SET as the manager of SET indices.
It is almost needless to say that the exclusion of GL from SET indices does not impact our business in anyway. The company has been and continues to make rapid progress towards meeting our strategic goals. Such track record has contributed to its inclusion in the MSCI Thailand Small Cap Index (ranked 4th among 88 stocks). This index is managed by MSCI, a major international provider of equity indices.
At the very least, the incident reflects your interests and involvement in GL and we are encouraged by your enthusiasm. On behalf of management, I assure you that we are all working hard to meet your expectations while maintaining a high standard of practice.
Thank you for your trust and support.
Chairman of Executive Committee
The Summary of extraordinary general meeting of shareholders No. 2/2016
13 Dec 2016
The Summary of extraordinary general meeting of shareholders No. 2/2016 for Group Lease Public Company Limited Held on 6th December 2016 In the room Magic 2, 2nd floor At Miracle Grand Convention Hotel.
Please refer to the following URL for video on that day.
Page No. of presentation file which Mr.Mituji Konoshita is presenting is stated left bottom side of VDO.
- presentation.pdf (Size: 2,569,896 bytes)
GL's Key Regional Investment Plans Get Shareholders' Green Light
07 Dec 2016
Chairman of the Board of Directors and Chief Executive Officer of GL, revealed the shareholders’ resolution, at the company’s extraordinary general meeting No. 2/2016 on December 6, 2016, to approve the proposed moves to expand the company’s presence in the digital finance markets in the Asean and Asian regions, which will be the new engine of growth for the company.
The acquisition will be made through Group Lease Holdings PTE. Ltd (GLH), a subsidiary registered on the Singapore Exchange (SGX), buying 22.27% shares in Commercial Credit and Finance PLC (CCF) from Creation Investments Sri Lanka LLC (Creation SL). CCF is a leading finance firm listed on Sri Lanka’s stock market with about one million customers and that will help GL to widen its geographical scope of operations beyond Asean to cover Sri Lanka, a growing South Asian market.
The 22.27% share acquisition will be part of the plan to hold a total of 29.99% shares in CCF, he said, adding that GLH has purchased the difference of 7.72% from two shareholders, i.e. BG Investments (PVT) Ltd. and Mr. Stephen L Lafrance Jr. The purchases, which were not connected transactions, did not require shareholder approval.
The combined value of the investments in CCF will reach THB 2.514 billion (about LKR 10.58835 billion). The CFF investments will improve GL’s performance beginning Q4 of 2016, as about USD 7 million (or about THB 244.6 million) will be posted as a profit sharing from CCF, whose profit for this year is estimated to be around US$22 million and around US$30 million for 2017.
The deal will also enable GL to have access to microfinance know-hows, which can be used to apply for credit expansions in Cambodia, Laos, Indonesia and Thailand.
Mr. Mitsuji added that GL’s shareholders also resolved to approve a proposed THB 277.24 million acquisition, to be executed by GL and/or through GLH, of all 1,387,680 issued and paid-up ordinary shares in BG Microfinance Myanmar Co., Ltd. (BGMM), a microfinance firm in Myanmar, at about US$5.77 (about THB 199.79) per share.
The BGMM acquisition will allow GL to immediately expand microfinance business in Myanmar, a country with a population of more than 50 million and huge loan demand. The deal means there is no need for GL to go through the difficult process of applying for a new microcredit business license from the Central Bank of Myanmar. Having been in operation for more than two years, BGMM has nearly 10,000 customers and a loan portfolio worth more than US$1.2 million (about THB 41.9 million).
GL’s shareholders, at an extraordinary general meeting, also approved proposed issuance of convertible debentures valued up to US$70 million to international investors on a private placement basis. Up to US$50 million convertible debentures will be allotted to JTrust Asia (JTA), a strategic partner in Indonesia, to finance expansions and secure working capital for GL’s digital finance business, and US$20 million convertible debentures to Creation SL, a partner in Sri Lanka, to raise funds for continued expansion. The debentures will have a three-year maturity period and a conversion price of THB 70 per share.
“The shareholders’ approvals will enable GL to increase its presence across the Asean and Asian regions at rapid rate and reach its performance goals and become a world-class digital finance firm,” said the CEO.