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[September 2002]
Majority Stake Acquired in Karat Sanitaryware
Karat Sanitaryware PLC announced to the Stock Exchange of Thailand (SET) that Somkiart Limsong and other shareholders were to sell 38.076 million Karat Sanitaryware shares to Kohler Co (Kohler, WI, USA) for 40.1073 baht per share. On completion, this will represent an acquisition of 80.67% of the registered total of shares in the company.
It is understood that Kohler will make a tender offer for the remaining shares and delist the company from the SET.Karat Sanitaryware achieved a net profit of 84.99 million baht for the second quarter of 2002, compared to a net profit of 52.6 million baht in the second quarter of 2001. Factors leading to this big increase included interest expense decreased by 16.86 million baht from loan prepayment and lower interest rate; and a gain as opposed to loss on the baht exchange rate.
Major competitors for Karat in the Thai market are American Standard and COTTO, the Cementhai Ceramic sanitaryware brand (part of Siam Cement Group).
ENDS