Equity Analysis /

Pruksa Holding PCL: A step closer to sustainable growth—51% of Inno Precast sold to GEL

  • Share swap between PSH and GEL; Inno Precast

  • Details of GEL and Inno Precast

  • Scope for synergistic benefits

Bualuang Securities
19 January 2023

PSL will transfer a 51% stake of Inno Precast Co Ltd to General Engineering Plc (GEL) in exchange for an 18.26% stake in GEL. We see the deal as a potential long-term growth driver (no impact in the short-term). HOLD!

Share swap between PSH and GEL; Inno Precast

On Jan 16, PSH announced that it will take an 18.26% stake in General Engineering Plc (GEL) by subscribing to 1.572.7m newly-issued shares (valued at 0.37Bt/share, a 37% premium to the market price) and will transfer 51% of Inno Precast Co Ltd (its wholly owned precast operation) to GEL. Management expects the deal to be completed in May 2023. PSH will recognize an accounting gain of Bt700m from the transaction.