STGT’s Subsidiary Names PCMS as Investment Advisor to Manage Asset Portfolio

STGG, a wholly-owned subsidiary of STGT, has entered into a Portfolio Management Agreement with PCMS to manage a 3,367 million baht investment portfolio

15/10/2021

Sri Trang Gloves (Thailand) Public Company Limited (STGT) announced that the Board of Directors Meeting held on 14 October 2021, has resolved to approve the entering into the Portfolio Management Agreement between Sri Trang Gloves Global Pte. Ltd. (STGG), a subsidiary in which the company holds 100 percent of shares and is established in Singapore engaging in financial asset management and financial investment of the group business, as the Client, and Paragon Capital Management Singapore Pte. Ltd. (PCMS), a juristic person established in Singapore and operates the business as the investment advisor and asset management, as the Investment Advisor, which is the connected person of the company since the major shareholder of PCMS are Dr. Viyavood Sincharoenkul and his spouse which Dr. Viyavood Sincharoenkul is the director of the company. Therefore, this transaction is classified as a connected transaction.

The value of the transaction is USD 1,500,000 or approximately THB 50.5 million calculated based on the average foreign exchange rate of the Bank of Thailand as of 14 October 2021.

STGG agrees to appoint PCMS as the investment advisor to manage the investment portfolio of USD 100 million in cash or approximately THB 3,367 million (based on the Foreign Exchange Rate), which is from the cash balance of the company.

PCMS will manage the assets under the portfolio to invest in financial securities including but not limited to stocks and shares, debt securities, derivatives, units in any unit trust, bank deposit, but excluding cryptocurrency for 2 years from the date of entering into the agreement.

The management fee is 0.75 percent per annum of assets under management or equivalent to USD 750,000 per annum, totaling USD 1,500,000 throughout the term of agreement or approximately THB 50.5 million (based on the Foreign Exchange Rate), which will be paid on a quarterly basis.