Property Perfect directors to decide today on stake in listed firm
June 16, 2014 00:00 By Somluck Srimalee The Nation 2,191 Viewed
Property Perfect's board of directors will meet today to approve the proposal to acquire a major stake in a listed condominium developer.
“We decided to acquire a property firm to boost our market share,” CEO Chainid Adhyanasakul said last week.
The move will take the company’s presales and revenue into the top four of listed property firms in the market.
After acquiring the major stake, the company will make a tender offer for shares from minor shareholders, as required by the Stock Exchange of Thailand (SET).
The company will remain a listed company on the SET.
The deal will be financed with the company’s internal cashflow and a bank loan.
Chainid declined to disclose the name of the company at this time, but said it was profitable.
“Before the press conference, we will report to the SET this evening the business plan after acquiring a major stake on Tuesday,” he said.
Property Perfect asked the SET on Friday to suspend trading in its stock until today, because this deal will affect its stock price.
Since the company’s strategy is to focus on developing residential projects, the acquisition would support its expansion in the future.
Property Perfect is a top-10 listed property firm targeting revenue at Bt15 billion and presales at Bt16 billion this year.
It earned Bt78.24 million on revenue of Bt2.9 billion last quarter.
The company plans to launch 20 projects worth Bt23.18 billion this year – seven condominiums in Greater Bangkok worth Bt6.2 billion, 10 single family home and townhouse projects in Greater Bangkok worth Bt9.25 billion and three in the provinces.
Among the three upcountry projects, two are for detached housing in Chiang Mai and in Nakhon Ratchasima’s Khao Yai area and one is for a condo in Hua Hin.