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The Stock Exchange of Thailand (SET) welcomes Officemate pcl (OFM), currently listed on the SET’s Market for Alternative Investment (mai), to its main board, listing in the Commerce sector and starting trading on December 26, with market capitalization expected to reach THB 10 billion (approx. USD 323 million)
Chanitr Charnchainarong, SET executive vice president and mai president, said; “OFM will move to trade on SET after its consolidation with Pranporn Co.,Ltd,, a subsidiary in the Chirathivat group. The group owns Thailand’s largest retail conglomerate, including Office Depot and B2S, with a combined 110 branches nationwide. After the merger, Officemate’s market value will increase to about THB 10 billion.”
OFM has a paid-up registered capital of THB 320 million with a par value of THB 1.00 each, consisting of 80 million common shares and 240 million newly-issued shares. OFM offered the new share issue to Chirathivat group at THB 37.50 per share, for a total THB 9 billion, on December 21. Thanachart Securities pcl is a financial advisor for listing on SET, while Maybank Kimeng (Thailand) Securities pcl is an independent financial advisor for the merger.
Worawoot Ounjai, CEO of Officemate, said: “Close cooperation between OFM, Office Depot and B2S will trigger strong synergy, as each company has its own specialization in different ways, which could supplement the strengths and solve the weaknesses of each other. OFM is a leading supplier of stationery and office equipment through e-commerce and e-procurement, while Office Depot and B2S together are Thailand’s biggest office supplies and stationery retail chain nationwide. This consolidation will increase the number of outlets and expand variety of products for OFM, as B2S has main interests in books, entertainment media, music, and edutainment, helping expand OFM’s customer base. After the merger, Office Depot will change its name to Officemate.”
Officemate's major shareholders after the merger are the Chirathivat group (75%) and OFM’s existing shareholders (25%). Its dividend policy is to pay no less than 40 percent of net profits after reserves. Calculation of OFM’s ceiling and floor share prices on its first trading day (December 26, 2012), will be based on the last trading share prices of its trading on mai.
