ORIGIN PROPERTY plans to buy 10 million shares worth Bt4 billion in Proud Residences Co.
The deal will be proposed to shareholders for approval on July 12.
The purchase will be financed by cash on hand and borrowing from commercial banks, Peerapong Jaroon-Ek, chief executive officer of Origin, told a press conference yesterday.
Origin Property will place 81,197.17 new common shares at a price of Bt12.3157 per share to three people – Jaraspim Liptapanlop, Thongchai Busrapan and Nune Taweesri – who are major shareholders of Proud Residences.
Subscriptions will open from July 31 to October 3.
Proud Residences is owned by the Liptapanlop family.
After the deal, Jaraspim Liptapanlop will hold 3.5 per cent of Origin, Thongchai Busrapan will own 0.75 per cent and Nune Taweeesri will hold 0.75 per cent.
Jaraspim will also become a director of Origin, Peerapong said.
“We decided to conclude this deal to boost our business expansion to cover all market segments in residential projects,” he said.
The company also will combine the backlogs, which are residences that are awaiting to transfer to customers, worth Bt24 billion. That will cover the lower-to-upper-income market.
“We will not change management of Proud Residences Co but it will be our subsidiary to expand in the premium market over the next period,” he said.
Proud Residences is developing the Bt17-billion Park 24 luxury condominium, which has already posted Bt10 billion in presales. The project will be completed in 2020.
Origin has developed 35 residential projects worth Bt30 billion. It reported revenue of Bt877 million and net profit of Bt171 million in the first quarter of this year.