Mr. Thongma Vijitpongpun, Chief Executive Officer and President, Pruksa Real Estate PLC, revealed that the Board of Directors Meeting held on February 19, 2016 had approved of the reorganization initiative to be proposed the Shareholders Meeting which is to be held on April 28, 2016. The rationale is to establish a new company under the name “Pruksa Holding PCL”, with key objectives of enhancing flexibility in business expansion to generate consistent income and increasing stability in revenue and profitability in the long run. It is anticipated that the reorganization would be completed within November 2016.
In this regard, the Board of Directors Meeting had been well informed of the Company’s direction towards sustainable growth and results of analyses produced by the Company’s consulting team. It had been agreed that the reorganization towards a holding company should entail several advantages to shareholders since a holding company would allow for business expansion opportunities, steady and continuous revenue stream and generous returns in the long run. Shareholders’ benefits will not be affected since there will be securities (shares) exchange procedure between Pruksa Real Estate and Pruksa Holding at the same rate; 1:1 of the market price on the day of transaction (security purchase period will be from September to October 2016). The Company will be announcing detailed procedures in exchanging securities and the exact schedule once again. After that, Pruksa Holding would register as the listed company in the Stock Exchange of Thailand under real estate category as usual, in replacement of Pruksa Real Estate, whose status would be withdrawn from being a listed company in the Stock Exchange of Thailand. Meanwhile, Pruksa Real Estate’s existing shareholders will then automatically become Pruksa Holding’s shareholders.
Nevertheless, the Company will still operate a real estate business after the reorganization to a holding company, under the supervision of the Board of Directors with strict adherence to the principle of corporate governance. There would be 3 key strategic intents that will be pushed forward over the next 5 years in order to achieve business objectives, particularly in generating continuous and sustainable growth; 1) maintaining leadership position in the real estate market mainly serving low- to middle-income earners (value) 2) increasing the market share in the upper-level accommodation segment (premium) and 3) identifying new business opportunities focusing on businesses that can sustainably and consistently generate income (recurring income).