ข่าวแจ้งตลาดหลักทรัพย์

1600/ 038 /2541 June 19, 1998 The Stock Exchange of Thailand 7th Floor, Sindhorn Tower 1 132 Wireless Road Bangkok 10330 Attention : Director and Manager Securities Exchange of Thailand Subject : News of the State Enterprise Policy Committee+s consideration on BCP+s Privatization According to reports in newspapers and other medium on June18-19, 1998 about the State Enterprise Policy Committee+s consideration on the BCP+s privatization plan, numbers of investors and the general shareholders are trying to find out the truth of this issue. To make itself clear, we would like to inform you that, as assigned, BCP has made a report on the background and study on the alternatives of the privatization to public, organizations, and general foreign investors, to present to the Minister of Finance.This report is also endorsed by the Minister of Finance to submit for consideration in the State Enterprise Policy Committee+s meeting. The content in brief is as follows: 1. The key considering point on BCP+s privatization whether to sell its shares to general foreign investors or to a single foreign company as major shareholder will depend on the government+s direction to let BCP+s work benefit the Thais or foreigner in future. 2. BCP has been established by the Government of General Prem Tinnasulanondha, as the Finance Ministry+s company in order to take over the foreign company (SUMMIT), which had made a big loss to the country. Later on, BCP has recovered from the loss status and successfully made profit from the very first year of operation. Also, BCP has succeed in managing its environment Gen. Prem Tinnasulanondha has focus on the BCP role in benefiting rural communities, the issue of which has become the company+s culture: to be the immune organization for community economy. 3. BCP has invested in Mongkolchai Pattana Co.,Ltd. expanding its business with 600-700 community organizations (over 1 million families). Communities invested in BCP+s gas stations, truck tanks, and convenience stores selling goods from communities and from the Royal Project, to help solve the poverty and unemployed problem, so that they can stand on their own and pay tax as well. It is currently in the expanding stage to benefit the unemployed people following the government+s policy. BCP has co-operated with communities for 8 years, and has proved success under the Board of Directors policy. The company+s outcome is better compared to the same foreign business. 4. According to the Cabinet Resolution on October 17, 1995, another 31% of the BCP+ shares (24% of PTT and no less than 7% of the Finance Ministry) are to distribute to public. (totally 1,600 million baht at the market price , 10 baht par) According to the Cabinet Resolution on September 16, 1997, BCP+s shares are to be sold to strategic partner. This direction was assigned to the relate authorities to prepare a study in depth. 5. To keep BCP as one of the ways to solve the rural problem of poverty and unemployed in accordance with the government policy, the 8th National Economic and Social Development Plan, and the Prosperity Decentralization Policy Committee, it is necessary for the BCP+s to distribute its over 50% of shares to public. The Finance Ministry should hold the major of the stake, while foreign investors allowed at no more than 5%. 6. At present, from the result of the quick survey requested by the Finance Ministry, there are over 139,175 Thai people, organizations and Thai communities in foreign country shown their interest in buying BCP+s shares; no.of people no. of shares % from the total shares May 4-27, 1998 113,679 307 m. 60 May 4-June 12, 1998 139,175 366 m. 70 There are still more people in the Thailand and the Thai communities in foreign country who shown their interest in buying BCP+s shares. The survey is still going on until July 31, 1998. 7. The Finance Ministry has assigned BCP to do a study on the privatization alternatives; that is to increase capital by selling more than 50% shares to those who are interested in. This is to be studied more. 8. To sell 49% of BCP+s shares to one foreign investor will allow BCP to be taken over. This will do harm to the BCP+s brand and to community+s sufficient economy, unless the state has different reason in doing so. 9. The BCP+s share distribution will be as either no.7 or 8. However, if the government would like BCP to increase its capital following no.7, to let BCP as one of the ways that solve the poverty problem, the company will have to do it step by step under the direction of the BCP Board of Directors, and the approval by the shareholders. This will have to be done under the rules and regulation of the Securities and Exchange Commission, and the rules and regulations of the Securities Exchange of Thailand. This will take some time to be finalized. The official information can be revealed to the SET to publicize to investors and general shareholders when the issue is completely clarified. Yours sincerely Rabil Pornpatkul Senior Manager, Corporate Planning Office Corporate Planning Office Telephone Number 301-2842