Siam Cement Public Company Limited (or SCC) hereby announces that it has reached an agreement for a stake reduction in Siam Furukawa Company Limited (or SFC), from 29 per cent to 5 per cent, with the sale of the 24 per centstake to The Furukawa Battery Company Limited (Japan), an existing shareholder of SFC. This transaction is valued at approximately 100 million Baht and SCC is expected to record a net profit after tax gain of approximately 46 million Baht in Q1/07.
This transaction is in line with SCC’s policy to concentrate on its core businesses, at the same time satisfies needs of Furukawa Battery who contemplates for the expansion of their business in Thailand. SFC is a producer of battery for automotive and motorcycle applications. With operations located in the province of Saraburi and an annual capacity of approximately 3 million batteries per year, SFC continues further develop OE manufacturers and aftermarket for automotive battery and motorcycle battery in Thailand more actively. The company recorded FY2006 sales of approximately 1,900 million Baht, net profit of approximately 7 million Baht and had assets worth approximately 880 million Baht.