RML to acquire KPNL’s assets, expanding the portfolio and strengthening the business while current major shareholder continues to control and manage the Company
RML disclosed the Board of Directors’ decision to acquire S19 and S28 projects from "KPN Land". The projects are worth 7.7 billion baht and will be completed in 2023. In addition, the Company acquired the backlog and remaining inventories of Diplomat 39 and Diplomat Sathorn projects which are ready for transfer and will drive revenue growth for 2018. Adrian Lee, Chief Executive Officer, is excited about the acquisition and collaboration with KPNL to expand the portfolio, enlarge client bases, push up the profit, and create shareholders value.
Mr. Adrian Lee, Chief Executive Officer of Raimon Land Plc., or RML, Thailand's leading real estate company, said that the board of directors approved the acquisition of assets from KPN Land Company Limited (KPNL). The Company will continue to develop S19 project with land area of approximately 1-rai and S28 project with land area of approximately 2-rai. The Company expects to recognize revenue from the S19 and S28 projects in 2023. In addition, RML’s board of directors has approved the purchase of KPNL’s inventories (backlog and unsold units) worth approximately 2.5 billion baht of the Diplomat 39 and the Diplomat Sathorn projects. The Company will be able to realize additional revenue from the Diplomat projects in 2018.
“Upon the shareholders’ approval, 2 KPNL’s representatives will join RML’s Board of Directors. Nonetheless, after the transaction, RML’s existing executive and management will continue to manage the company as usual. We are pleased to have KPNL as our shareholders and will work together to strengthen RML and maximize value for our shareholders.” Adrian Lee said.
Having a new business partner helps strengthen the business and expand its competitiveness and business opportunities in premium condominium market. More specifically, it can reach a wider customer base - around 50% of RML customers are foreigners, while KPNL’s customers are 90% Thai, meaning the two perfectly complement each other.
In order to issue newly-issued ordinary shares of the company, it is required to obtain the approval from meeting of the shareholders of the company with the votes of not less than three-fourths of the total votes of the shareholders who attend the meeting and have the right to vote, and votes from people who have vested interest will not be counted. The transaction will have to be approved by the SEC as well.