IVL to Move Ahead with Growth Plans Major shareholders will fully subscribe to their portion of allocated shares
Bangkok - 2 February 2011 - Indorama Ventures Public Company Limited (IVL) will move forward with plans to triple the Company's production capacity to 10 million tonnes by 2014 as its major shareholders have confirmed that they will subscribe to all the allocated new shares ahead of launching ambitious growth plans. Founder and Group CEO, Mr. Aloke Lohia confirmed that Indorama Resources, in which he is the controlling shareholder, will indeed subscribe to all of its rights to purchase new shares in the company at 36 Baht per share.
"I am very excited about the future growth of the company as IVL is the foremost global Polyester Value Chain Company and we have an opportunity to cement that position in no uncertain terms," said Mr. Lohia. "My family and I are totally committed to supporting IVL in its growth plans as we are confident this is good for all shareholders."
"Moreover, I am pleased to receive confirmation from Bangkok Bank and our key stakeholders to participate in the rights issue. They have indicated that they will continue to support our growth."
"With this participation of Indorama Resources, Bangkok Bank and other key stakeholders, IVL will raise a sufficient amount through this rights issue which should be adequate to ensure that our growth plans will go forward. Our business continues to grow from year to year." Lohia said. If any, unsubscribed portion remains on completion of rights issue the company may decide to cancel the unsubscribed portion of shares..
Indorama Ventures has already announced its "Aspiration 2014" plan in 2010 to achieve growth by a blend of acquisition and greenfield investments, including the acquisition of plants in the USA, Mexico, Indonesia, Poland and China. All acquisitions announced in 2010 have already been funded and 2011-2014 will use the new capital, cash flow from operations and debt to fund large investments in PTA and PET in India and the Middle East and new acquisitions. The company expects to invest approximately US$3.8 billion over this period to achieve its target growth.