Golden Land targets Krungthep Land

Golden Land has budgeted up to Bt3.56 billion for the takeover, involving as much as 100 per cent of the 1.78 billion shares, company president Thanapol Sirithanachai said yesterday after the board of directors approved the deal late on Tuesday.

He said the board had approved the purchase of 699.99 million shares or 39.3 per cent at Bt2 per share from SMJC Real Estate Co, worth Bt1.39 billion. Then Golden Land will tender an offer through the Stock Exchange of Thailand, also at Bt2 per share, aiming to acquire at least 51 per cent but perhaps as much as 100 per cent.

According to the company’s report to the SET early yesterday, it expects Krungthep Land’s major shareholders to be interested in selling their shares. They include Frasers (Thailand) Pte, which holds 40.45 per cent, Property Perfect, which holds 20.22 per cent, and minor shareholders with about 2,300 shares. 

Frasers (Thailand) is a subsidiary of Singaporean firm Fraser and Neave, which is also owned by Charoen.

Thanapol said this deal would allow Golden Land to expand into the middle- and upper-income markets. 

Meanwhile, the company’s board also approved a plan to set up a real estate investment trust worth Bt10 billion by joining with Univentures, its parent company, to sell Sathorn Square, which is owned by Golden Land Property Development, and Park Ventures Ecoplex, which is owned by Univentures, to the REIT. Golden Land will hold a 30-per-cent stake in the REIT. 

Both deals, the takeover of Krungthep Land and setting up the REIT, will be proposed to Golden Land shareholders on December 9. If approved, the deals will get under way in the first quarter of next year, he said.

Property Perfect chief executive officer Chainid Adhyanasakul told The Nation that the company’s board of directors would next month consider Golden Land’s proposal to buy its 20.22-per-cent stake in Krungthep Land. However, he added that if the board approves the sale, it would not have an impact on Property Perfect’s long-term business strategy. 

At present, Krungthep Land operates in a similar market to Property Perfect, so if it sells the stake, Property Perfect will go it alone, focusing on residential developments in Bangkok and Eastern Seaboard provinces such as Chon Buri and Rayong, he said.

Yesterday Golden Land shares closed at Bt9.15, up 5.17 per cent from Tuesday, while Property Perfect closed at Bt1.31, up 3.97 per cent.