Taihan Electronic Wire Co., South Korea's No. 2 wire and cable maker, said
Thursday that it has clinched a US$44 million contract to build a power cable in
Saudi Arabia.
Under the deal with Saudi Services for
Electro-Mechanical Works Company Ltd., Taihan Electronic Wire will install 13.4
kilometers of 380 kV high-voltage power cable in Jeddah International Airport
and connect it to a substation in the northeast of Jeddah.
The latest
deal brings the total value of overseas orders won by Taihan Electronic Wire to
$250 million this year, over 20 percent more than last year's overseas
orders.
Also Thursday, Taihan Electronic Wire announced it will
conduct a rights offering worth 347.6 billion won ($320 million) to pay back
bonds with warrants that will begin to mature in March, and to use as an
operating fund.
The wire and cable maker said it will issue 80 million
new shares with a face value of 4,345 won per share.
The rights issue,
when completed, will improve the company's financial health by reducing its debt
burden, Taihan Electronic Wire said in a statement posted on its Web site. The
company said its current debt ratio stands at around 600 percent.
Shares of Taihan Electronic Wire were trading at 6,000 won on the Seoul bourse
as of 11:19 a.m., down 2.91 percent from the previous session.