In the News: 2004

Somboon Advance Technology PCL Announces Lombard as its New Financial Partner

PR Newswire
28 September 2004

Somboon Advance Technology Public Company Limited ("SAT") is pleased to announce the purchase of approximately 13.3% of the Company by the Thailand Equity Fund ("TEF").

As the core companies of the Somboon Group, SAT and its subsidiaries are among Thailand's leading privately-held first-tier Original Equipment Manufacturing ("OEM") suppliers of auto parts. Established in 1941, SAT initially focused on dealing and trading vehicle parts. As the business grew, SAT pioneered the manufacturing of automotive spring products in 1962, one of the first such manufacturers in Thailand. SAT later ventured into the manufacturing of other vehicle parts, including drive shafts, brake parts, engine parts and suspension parts, with an emphasis on the one-ton pick-up truck segment. To date, SAT has received accolades and various awards for its operational and environmental achievements from major automakers such as Toyota, Honda, Isuzu and Mitsubishi Motors.

In 2003, SAT generated consolidated revenues of Baht 2.5 billion. The major customers of SAT and its subsidiaries are local manufacturers and exporters of complete-build (CBU) automobiles, including Mitsubishi Motors, Honda, Toyota, Isuzu and Auto Alliance (Ford and Mazda). SAT also exports its products to various worldwide destinations such as Japan, Australia and ASEAN.

Mr. Verayut Kitaphanich, President of SAT, said, "The Company is delighted in having the Thailand Equity Fund as our long-term financial partner. Through the fund's representation on the board of directors of the Company, we look forward to many years of close co-operation and to sustaining strong growth".

The Thailand Equity Fund is a USD245 million private equity fund sponsored by Lombard Investments, Inc., headquartered in San Francisco, and the International Finance Corporation (IFC), part of the World Bank Group. The fund was formed with the support of the Government of the Kingdom of Thailand to make private equity investments in operationally competitive Thai businesses. Investors in the fund include the IFC, California Public Employees' Retirement System (CalPERS), Asian Development Bank, DEG (a member of Germany's KfW Group), the Ministry of Finance of the Government of Thailand, and fifteen leading Thai banks and other institutions.

"The fund has always been interested in investing in established, competitive companies in Thailand's booming auto industry. SAT already has a strong business platform in this rapidly growing sector, and the Thailand Equity Fund will look for ways to help grow the businesses, including utilizing our global investors network," said Mr. Thomas Smith, Lombard's Managing Director in San Francisco.