SET-listed developer Property Perfect Plc (PF) insists it is maintaining a 20.22% stake in Krungthep Land (KLand) following a report that a company owned by liquor tycoon Charoen Sirivadhanabhakdi had spent 1.4 billion baht to acquire additional shares in KLand.
"We don't have any plans to sell our existing stake in KLand," said chief executive Chainid Adhyanasakul.
In June, Mr Chainid said Property Perfect was open to either selling or increasing its stake in its joint venture property developer, in which Frasers (Thailand) Pte, controlled by Mr Charoen, holds 40.45%.
Over the past two years, Mr Chainid has been in talks with Mr Charoen to acquire an additional stake in KLand, but the tycoon also had the same intention.
Should Property Perfect sell its stake in KLand to Fraser, Mr Chainid earlier estimated it would raise 1 billion baht from the deal. He said if the developer added shares, it would be in the form of a share swap.
Last month, Frasers Centrepoint Ltd reported to the Singapore Exchange its wholly owned subsidiary Frasers (Thailand) entered into a joint venture with SMJC Real Estate Co, part of the TCC Group owned by Mr Charoen.
The joint venture follows SMJC acquiring a 39.33% stake in KLand from parties unrelated to the company. Mr Chainid guesses the sellers include KLand chief executive Thongchai Kunakornporamat and his allies, who held a combined 16.57%, and KLand president Bichit Rattakul and his group, who held 14.05%.
"SMJC bought its stake from other shareholders, not us," said Mr Chainid. "In the end, only Property Perfect and Mr Charoen's group will hold a stake in KLand."
Mr Chainid, also KLand's director, expects after the share purchase it will be unlikely KLand can raise funds or list on the SET due to Mr Charoen's control.
Established in 2005, luxury residential developer KLand has registered capital of 2.4 billion baht and paid-up capital of 1.78 billion. It posted a net profit of 300 million baht in 2013, up 100% from 2012, on revenue of 3.17 billion, rising 37%.
PF shares closed on the SET yesterday at 1.30 baht, up two satang, in trade worth 47.3 million.