Founding family sells MK Real Estate stake to new shareholders

 

The deal will make those two companies the major shareholders in MK Real Estate Development, and end the presence of the Tangmatitham family in a business they founded 50 years ago.

MK’s founder, Chuan Tangmati-tham, said this handover of the family’s shareholding was considered a bestowal of the business that he has fostered for more than 50 years upon a team that is determined to drive the company forward, embracing opportunities to expand into new businesses. 

“I believe that with the strong foundation of experienced staff, financial strength and a long-standing reputation among customers, the new executives will be capable of continuing the company’s sustainable growth. All stakeholders – customers, employees and shareholders – will be well taken care of. 

“From now on, as the chief adviser to the board of directors, I am willing to give advice to help guide the company towards its business targets,” said Chuan, 78.

Castle Peak Development is wholly owned by Suthep Wongvorazathe, former chairman of the Export and Import Bank of Thailand.Suthep said the two companies had acquired 20.64 per cent of MK Real Estate Development from former major shareholders Chuan Tangmatitham and his family for Bt6.75 per share, or a total of Bt1.2 billion. 

The transaction was executed on the Stock Exchange of Thailand yesterday. 

MK’s board of directors has appointed Suthep as chairman to replace Chuan, as well as Philipvira Bunnag and Sutida Suriyodorn as executive directors. Suthep said his group was confident that the property market would return to strong growth, while MK had the potential to be one of Thailand’s leading residential property developers. 

With strength in low-rise residential housing, the company has various projects in prime locations throughout Greater Bangkok, covering the price range between Bt3 million and Bt10 million. 

Last year, MK earned Bt2.4 billion in revenue and Bt450 million in net profit. Interest-bearing debt was less than Bt1.5 billion, reflecting its strong financial position. Net profit margin, at the 20-per-cent level, was viewed as outstanding among listed developers. In the first quarter of this year, MK Real Estate Development reported revenue of Bt436 million and net profit of Bt30.51 million.

“I am confident in the company’s growth potential in real-estate development for sales and intend to expand further into the rental business. We aim at being a comprehensive real-estate developer,” Suthep said.