KPN eyes 30% stake in Prinsiri 

KPN eyes 30% stake in Prinsiri 

KPN Group Corporation, a property firm of the Narongdej family, is set to become a major shareholder of SET-listed developer Prinsiri Plc (PRIN) after the latter's board approved a share swap yesterday.

Under the deal, KPN would control 30% of Prinsiri, while the stake of the current major shareholder, the Kovitchindachai family, would dilute to 16% from 40% now.

Chaiwat: Continuous growth important

"We don't care if we become a minor shareholder as long as our company grows continuously," Prinsiri vice-president Chairat Kovitchindachai said yesterday after a board meeting.

The deal is expected to conclude by October.

Prinsiri's board also approved a private placement comprising 960 million shares at 2.10 baht each.

An additional 960 million shares at the same price will be swapped with KPN. Details about prices in the share swap and the name of potential buyers in the private placement were not available.

According to Mr Chairat, KPN is not interested in the private placement, as it needs to invest huge capital in Renewable Energy Corporation (REC), a majority shareholder of Wind Energy Holding Co (WEH).

KPN announced last week that it had acquired the entirety of REC for an undisclosed amount.

Founded as a holding company for WEH, REC currently holds a 59.5% stake in WEH.

WEH was originally owned by Nopporn Suppipat, for whom an arrest warrant on lese majeste charges was issued by the Thai government late last year.

Currently, KPN has four ongoing condo projects with a total sales value of 9.1 billion baht, comprising The Capital Ratchaprarop-Vibha, The Capital Ekamai-Thonglor, The Diplomat Sathorn and The Diplomat Sukhumvit 39.

KPN will transfer the two projects under The Capital brand during the second half. With KPN's revenue being consolidated, Prinsiri will gain 5 billion baht in revenue by the end of 2015, half each from both firms.

PRIN shares closed yesterday on the SET at 2.54 baht, up 20 satang, in trade worth 109 million baht.

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