RS Public Company Limited (SET: RS) has announced the establishment of the new joint venture company via the Stock Exchange of Thailand (SET).
RS stated that RS LiveWell Company Limited, a wholly subsidiary of the company, had invested in OCBFF Corporation, a Filipino company, with the details as follows:
The joint venture company will operate as a distributor of health and beauty products in the Philippines, with an investment value of approximately PHP 50 million. The investment proportion was for RS to hold 51% of total issued shares of subsidiaries, while the remaining 49% will be held by persons who are not connected to the company.
The company had the right to propose the name for the Nomination of Director as it held 51% of the investment proportion, while the source of funds for the investment came from the company’s working capital and/or long-term loans.
The expected benefits of the joint venture were to increase the opportunity to generate income and returns for the company and expand sales channels into foreign markets.
The investment of the company is worth THB 32,000,000; therefore, it was calculated according to the total consideration value method criteria. The transaction size is 0.40% of the company’s total assets. (According to the latest financial statement as of 31 December 2023, which is worth THB8,030,710,013).
Meanwhile, the name for the joint venture company was in the process of being considered, and the date of the transaction was within the third quarter of 2024.
After the completion of the said transaction, this joint venture company will have the status of a subsidiary of the company.
