Minor International Plc (MINT) plans to spend 4 billion baht for business expansion this year amid an improving economic climate, says chief financial officer Pratana Mongkolkul.

William Heinecke, MINT's chairman and CEO, and SCBpresident Kannikar Chalitaporn seal a financing agreement yesterday. MINT is preparing to buy assets for its growth, and would like an international food brand.

The country's largest listed hotelier and restaurant chain operator has set aside 2.5 billion baht for investment in the hotel business and the remainder for the food business. The funds will mainly come from the company's cash flow, which is around 1 billion baht currently.

With strong cash flow and an efficient financial structure, the company does not need to raise new funding in significant amounts for business expansion this year, she said.

The company has a credit line with Kasikornbank of 4 billion baht in preparation for asset acquisitions, and expects another 1 billion baht in financial support from Siam Commercial Bank. The company signed a loan agreement with SCB yesterday as a committed facility for business operations. However, the company plans to maintain financial discipline with a low debt-to-equity ratio of one time.

Ms Pratana said the company had talked with several investors in the food and hotel businesses on asset acquisitions both inside and outside of Thailand. For the food business, it would like to take over an international brand. Each deal would be worth between 1 billion and 3 billion baht, and it expects a deal will be made this year.

William Heinecke, the MINT chairman and CEO, said the company projected better revenue for both the hotel and food businesses this year in line with an improving economic environment. The company plans to maintain its regional leadership position for both businesses.

Its hotel occupancy rate is expected to increase to 65% this year after 50% last year. Economic and political uncertainty affected this sector in 2009. However, the company booked satisfactory revenue from the food business last year, despite the contraction of economic growth.

The country's gross domestic product contracted 3% in 2009, but MINT reported revenue growth in the food business of 10% for the first nine months last year. Economists predict the Thai economic growth rate for 2010 will be 3-5%.

MINT shares closed yesterday on the Stock Exchange of Thailand at 10.10 baht, unchanged, in total trade of 28.95 million baht.