SET-listed WHA Corporation, a build-to-suit warehouse operator, is said to be ready to sign a memorandum of understanding to acquire full control of Hemaraj Land and Development Plc as early as Monday.
A bird's-eye view of a Hemaraj Land and Development industrial estate. The company has said it would sell its assets for the right price. WHA Corporation is reportedly interested, and a deal could be announced as early as Monday.
A source familiar with the matter said the multibillion-baht acquisition deal was meant to serve as a springboard for WHA to expand into industrial estates, while the company could use Hemaraj's existing land and property for other related business.
WHA plans to acquire all of Hemaraj, the source said.
Sawasdi Horrungruang, co-founder and executive director of Hemaraj, said his group was ready to sell if the offering price was attractive.
The WHA board discussed the deal yesterday afternoon and will announce its decision next week, he said.
As of March 28, the Horrungruang family was Hemaraj's major shareholder with a 15.01% stake through Phenpunnee, Sumeth, Vikit and Sawasdi Horrungruang, SET data show.
Recent press accounts alluded to Hemaraj executives saying a listed company had expressed an interest in taking over the company, which had a market capitalisation of nearly 50 billion baht.
WHA later dismissed the reports, saying the company had yet to consider any acquisitions of other listed companies.
It has resorted to acquisitions as a speedy method for growth.
The company recently branched into office rentals by acquiring Equinox the Office Place from Major Development Plc for 2.05 billion baht.
WHA achieved first-half revenue of 301 million baht for a net profit of 59.7 million.
Hemaraj took in sales and service revenue of 5.15 billion baht for a net profit of 2.54 billion for the first nine months of this year.
If the deal goes through, WHA's market capitalisation will rise to about 80 billion baht from 36.6 billion as of Thursday.
Hemaraj is a developer of industrial estates, ready-built factories and utilities in Chon Buri, Rayong and Saraburi provinces.
WHA chief executive Somyos Anantaprayoon said his company's revenue would reach 5.5 billion baht after the sale of assets worth 4.7 billion baht to the already set-up WHA Premium Growth Freehold and Leasehold Real Estate Investment Trust (WHART), which was taken public this past Thursday.
Full-year sales revenue will probably fall short of last year's 7.17 billion baht, Mr Somyos said.
However, net profit could be similar to last year's at 1.46 billion, he added.
WHA shares closed yesterday on the SET at 39.25 baht, up 1.25 baht, in trade worth 156 million baht.
HEMRAJ shares closed at 4.44 baht, down 12 satang, in trade worth 532 million baht.