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Raimon Land buying KPN

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SET-listed developer Raimon Land Plc (RML) expects to have the largest market share in the luxury residential segment after acquiring KPN Land Co, a property arm owned by the Narongdej family.

Lionel Lee will be chief executive from Nov 1.

The company also appointed Lionel Lee, chairman of the executive committee and former chief executive, as the chief executive in place of Adrian Lee, who will take over as chief operating officer on Nov 1.

"The change in management positions is meant to support the company's business expansion after acquiring KPN Land," said a source at Raimon Land.

On Thursday, Raimon Land's shareholders approved investment in assets of KPN Land via an entire business transfer of 1.57 billion baht, according to Raimon Land's report to the Stock Exchange of Thailand.

The payment will be made with 500 million baht in cash and 597 million newly issued ordinary shares for private placement at a par value of 1.80 baht, equivalent to 1.07 billion baht.

KPN Land will hold 14.31% of Raimon Land's paid-up capital after an increase in registered capital to 4.27 billion baht from 3.67 billion.

KPN Land's assets consist of condo units that are ready for transfer at two projects: The Diplomat Sathorn on Sathon Road and The Diplomat 39 on Sukhumvit Soi 39.

KPN also holds two plots for future development in Sukhumvit Sois 19 and 28, where Raimon plans to develop S19 and S28. The developer expects to realise 7.7 billion baht in revenue from the two projects by 2023-24.

KPN Land yesterday reported that its general meeting of shareholders on Sept 27 was lawful. On Oct 11, an extraordinary general meeting of shareholders also approved Raimon Land acquiring KPN Land with 92.62% of shares voting in favour.

The report came after one of KPN Land's shareholders, Nop Narongdej, the second son of the family, asked the civil court on Oct 5 to revoke the resolution of the extraordinary general meeting of shareholders and to suspend KPN Land's resolution to sell assets.

KPN Land said the sale of the company's assets totals 2.5 billion baht, not 4 billion baht as claimed by Mr Nop, who holds  one share of KPN Land.

RML shares closed on Friday on the SET at 1.42 baht, up three satang, in trade worth 50.44 million baht.


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