Fund manager Regent Pacific Group is urging Pioneer Industries International (Holdings) shareholders to accept its general offer for Pioneer shares it does not own as uncertainty looms over Pioneer's assets in Bangkok.
Regent proceeded yesterday with the hostile takeover bid for property and investment holding company Pioneer after securing unanimous approval from Regent's shareholders at an extraordinary meeting.
Regent executive director Peter Everington yesterday said the future of Pioneer's primary asset - a 3.77 per cent stake in cash-strapped Bangkok Bank - was clouded by a recapitalisation plan.
'The bank is launching a private placement to foreign investors for US$1 billion to keep it afloat. But the fund-raising exercise will dilute Pioneer's stake 40 per cent,' he said.
Pioneer's interest in Bangkok Bank is worth HK$600 million, almost the same as Pioneer's market capitalisation yesterday.
Pioneer would have to plough in $300 million should it seek to maintain its Bangkok Bank shareholding, Mr Everington said.
Pioneer deputy managing director Kenneth Gaw said the company had yet to decide if it would take part in recapitalising the troubled bank.