DPAINT to buy The City Phuket developer in deal worth up to 359.43 million baht
DPAINT said it will acquire 100% of the developer of The City Phuket condominium project in a deal worth up to 359.43 million baht, with funding also earmarked for Building C and working capital.
Thai paint maker DPAINT said it will invest in The City Phuket Resident Co., Ltd. (CPR), the developer of the The City Phuket condominium project, in a deal valued at no more than 359.43 million baht, as it seeks to build a new revenue base beyond its core business.
The company said the transaction will give it a 100% stake in CPR and include funding for the development of Building C as well as working capital for operations. DPAINT described the investment as part of its long-term growth strategy to diversify revenue sources and strengthen future earnings as competition intensifies and growth in the construction materials industry slows.
The City Phuket project is located in Phuket province, which DPAINT said has strong potential driven by tourism growth, investment and housing demand. Buildings A and B have already been completed and are in the sales and title-transfer stage, while Building C is under development and is expected to become an important future source of revenue.
DPAINT said the acquisition is not only an expansion into a new business but also an extension of its existing expertise. The company said it can directly use its architectural paint products, construction chemicals and construction know-how in the property project, helping expand sales channels, improve cost management and create added value across both businesses.
Management said the investment should improve returns for shareholders through revenue recognition from the existing project and future income opportunities from Building C. The company also said a more diversified revenue structure should strengthen cash flow, reduce earnings volatility and improve long-term business flexibility.
DPAINT added that director, executive and major shareholder Sidapun Sombattheera has declared her intention to fully subscribe to her allocation in the company’s capital increase and also expressed interest in subscribing to any remaining newly issued shares. The company said this reflects confidence in the potential of The City Phuket project and in DPAINT’s future growth direction.
