Hemaraj Land and Development (HEMRAJ) and Wha Corporation have dismissed media reports that they are involved in acquisition talks.
WHA yesterday denied reports that the SET-listed developer of warehouses and distribution centres was negotiating to acquire another listed company with market capitalisation of around 50 billion baht and the deal is expected to seek approval from the company board next month.
"The company has not considered the plan for acquisition of another listed company. However, if the company has additional information or clarity on such matters,
the company will propose the matter to the board of directors and/or shareholders for consideration, as well as clarify the matter with the SET, the
company's shareholders and investors as soon as practicable," it said in a filing with the Stock Exchange of Thailand (SET).
The SET halted trading of both WHA and HEMRAJ since the afternoon trading session yesterday, requiring them to clarify the report. The media referred to HEMRAJ's executives saying that a listed company had expressed an interest in taking over the company.
Separately, an official at HEMRAJ's investor relations department said he was unaware of the acquisition deal, while company executives could not be reached for comment.
WHA is a fast-growing company. It recently branched into office rentals by acquiring Equinox the Office Place from Major Development for 2.05 billion baht.
During the first six months, WHA's net profit dropped significantly from 144 million baht to 59.7 million baht over the past 12 months, while industrial estate developer HEMRAJ saw its net profit jump to 2.06 billion baht from 1.46 billion.
As of last Friday, HEMRAJ's market capitalisation amounted to 44.6 billion baht, while WHA's stood at 36.9 billion.