Board of directors of Prinsiri, one of Thailand’s listed property developer, has approved the acquisition of majority stake in KPN Holding through a combination of share swaps and cash payment for 4.032 billion baht (around $120 million).
Prinsiri will propose it in an extraordinary shareholders’ meeting for approval on August 28, according to its report to the Stock Exchange of Thailand.
Before the share swap, KPN Holding will buy the entire stake in its subsidiary KPN Group Corporation, which runs the group’s property business. Then, Prinsiri will acquire 8 million ordinary shares in KPN Holding at 504 baht per share, worth 4.032 billion baht in total.
The transaction will be divided into two parts. Prinsiri will issue 960 million ordinary shares at par value of 1 baht apiece and offer at 2.1 baht for a share swap, totaling 2.016 billion, and it will pay the other half of the transaction in cash.
Prinsiri’s acquisition will include the transfer of all assets, debts, rights and obligations, and encumbrances available to KPN Holding.
Upon the completion of the acquisition, KPN Holding will hold 30.57 per cent stake in Prinsiri.
Prinsiri recorded total sales of 601 million baht and the net profit of 820,000 baht in the first quarter of this year. It projects the revenue will reach 2.6 billion baht this year.
Prinsiri’s current major shareholder is the Kovitchindachai family. In the coming shareholders’ meeting, it will ask for approving two representatives of KPN Holding, Krit Narongdej and Nuttawut Phowborom, to be the directors of the company and give them signing authority.