Comment: BLAND Plc

So BLAND’s owner, K. Anant, came out for his first press interview in Donkey years and here are the key points

  • Plans to spend 2 billion baht to develop new projects at Muang Thong Thani and sell 600 rai on Srinakarin Road worth 7.2 billion baht.
  • Chairman Anant Kanjanapas said the company also aims to invest 600 million baht to develop a mass transit system at Muang Thong Thani linking with the MRT Pink Line (Khae Rai-Pak Kret and Min Buri).
  • Bangkok Land’s aggressive stance comes after the company achieved a deal to buy back 44.82% of shares in Impact Exhibition Management Co from South East Asia Opportunities Fund Ltd for 2.7 billion baht. Five years ago, the fund bought the same amount of shares in Impact Exhibition Management for 7 billion baht.
  • Bangkok Land made an initial payment of 600 million baht from its own cash flow last Friday. It will pay the remaining 2.1 billion baht within 90 days, financed from its own cash flow or borrowing.
  • Impact Exhibition Management runs Impact Arena, Impact Forum, Impact Challenger, Impact Exhibition Center and Novotel Bangkok Impact Hotel.
  • It generates 1 billion baht a year and can help Bangkok Land pay dividends to shareholders once it owns 100%.
  • With 15 million people visiting Impact Muang Thong Thani each year, plus 10 million people living in Muang Thong Thani, Mr Anant has floated the idea of a mass transit system for the township.
  • There are two options, the first being a joint venture with the Mass Rapid Transit Authority of Thailand (MRTA).
  • For this option, Bangkok Land will offer a 20-rai site for the MRTA to build a mass transit depot at Muang Thong Thani connected to the Pink Line.
  • The company is negotiating spending 600 million baht _ half the total investment _ on the depot construction.
  • The 2-billion-baht outlay is to develop three projects in the next few years.
  • One of them is BeeHive, a two-storey neighbourhood shopping centre with a total lettable area of 8,340 square metres on a six-rai plot opposite Sukhothai Thammathirat Open University. The project began construction this month and will finish in late 2013.
  • The other two projects will be shophouses for sale and rent in two locations: Easy Promenade behind Impact Hall, worth 650 million baht; and Festival Walk near Kasikornbank’s Muang Thong Thani branch, worth 300 million baht.
  • Late last year it launched the first phase of the Double Lake condo project with 499 units starting at 1.95 million baht for sizes from 32 square metres. With 80% of those sold, the second and third phases with 499 units each will be launched in mid-2013.
  • Bangkok Land now has 750 rai in Muang Thong Thani, down from 4,500 rai before the 1997 financial crisis. This plot is the firm’s second-largest land bank after a 1,350-rai plot on Srinakarin Road ending at Outer Ring Road.
  • It plans to sell 600 rai from this block at 12 million baht per rai. The plot will have higher potential after Chaturathit Road between Srinakarin and Rom Klao is cut through.

Source: Bangkok Post

What simple story can come out of this?

1. Sale of Muang Thong to a property fund thereby realising potentially up to 1 Baht/share

So look anytime an owner publicly buys billions of baht of his own shares its fairly obvious somethings up :)

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3 thoughts on “Comment: BLAND Plc”

  1. Hi Pon,

    Great website!

    Is the information of owners buying/selling their stock available? I was searching both the SET website as well as my brokers’ but I could not find it. I am assuming this kind of insider transactions have to be disclosed somewhere.

    Thanks,
    Kris

    1. Hi Kris,

      Thanks for the comment. Yes the information is readily available at the SEC’s website, not SET’s, the url is http://www.sec.or.th and you simply go to Change in Management’s Holdings and its all there for you.

      Separately I would like to note re BLAND that the owner is well known for being “clever” in extracting value for himself and his family personally at the expense of minority shareholders..something to keep in mind….

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