Saha Union approves subsidiary's restructuring plan

In the statement to the Stock Exchange of Thailand, the board approved Union Footwear's plan to raise capital by Bt400 million. It would also buy all shares left over from the rights offering.

 The boad also approved the plan to sub-contract Union Footwear for electronics parts manufacturing. It also approved the asset sale worth Bt300.95 million to Union Footwear. It would also rent factory and land to the company for Bt170 million per annum.

 All decisions could be revoked if any of them is rejected by Union Footwear's shareholders.

 Union Footwear announced the business restructuring plan to reverse its financial status. It has raked up huge losses from footwear manufacturing for years and decided to shift to electronic parts manufacturing. Saha Union holds a 45.38 per cent in the footwear company which is in the process to rename itself to Union Technology (2008).

- The Nation