Supalai preps M.K. takeover

SET-listed developer Supalai Plc (SPALI) plans to officially file a tender offer next Tuesday to take over M.K. Real Estate Development Plc, in a deal worth 4 billion baht.

Supalai has filed a document with the Securities and Exchange Commission declaring its intention to fully acquire 992.01 million M.K. shares at a price of 4.10 baht per share.

Maybank Kim Eng Securities Thailand has been appointed as the tender offer preparer.

Supalai chief executive Prateep Tangmatitham said M.K.’s businesses differ from Supalai’s, with various recurring-income properties. Supalai’s main business is residential development.

“We are interested in M.K. as it offers a chance to expand to new businesses,” said Mr Prateep. “It will be a win-win collaboration to increase the growth potential of both companies.”

M.K. has an 18-hole golf course, Flora Ville Golf & Country Club, or formerly Chuan Chuen Golf Club on a 400-rai plot in Pathum Thani. Last year it invested 160 million baht to renovate the 24-year-old golf course.

M.K. also owns Bangkok Free Trade Zone, a warehouse and factory for rent with a total lettable area of 115,000 square metres in Bang Phli, Samut Prakan. The firm plans to develop an additional 38,000 sq m this year.

M.K. rents apartments at Park Court Sukhumvit 77, on Sukhumvit Soi 77, via a property management subsidiary, Yours Property Management Co.

The company has plots in good locations, with relatively low costs when compared with land prices that have the potential to be developed, said Mr Prateep.

Earlier this year, M.K. announced the launch of seven new projects worth 4.72 billion baht.

Those projects comprise five single detached house projects and two townhouse projects in existing locations, including western and northern Bangkok and Pathum Thani.

SPALI shares yesterday closed at 24.20 baht, down 60 satang, in trade worth 178.3 million baht.