The Erawan Group has announced that it will list Hop Inn Company Limited in the Stock Exchange of Thailand in 2027 after securing a strategic partner Lapis Hospitality Pte. Ltd.
The Erawan Group Public Company Limited (SET: ERW) has announced that Erawan Hop Inn Company Limited (EHI), a subsidiary of the company operating a chain of budget hotels under the brand HOP INN both in Thailand and other countries in the Asia-Pacific region, has entered into a Share Subscription Agreement (the Share Subscription Agreement) with Lapis Hospitality Pte. Ltd. (the Investor), a company managed by Lombard Asia V, L.P., to allow the Investor to subscribe to 57,534,247 newly-issued ordinary shares, equivalent to 16.09 percent of the total shares issued and sold, for a total value of THB 700,000,000 or approximately THB 12.17 per share.
In this connection, the company has entered into a Shareholders’ Agreement (the Shareholders’ Agreement) as of today. In any regard, the transaction shall be completed once all actions specified under the Share Subscription Agreement, including those with respect to the conditions precedent, have been satisfied. The transaction will be completed within 60 days.
After the transaction, ERW will hold 83.91% of shareholding in EHI while Lapis Hospitality Pte. Ltd., as an investor, will hold 16.09% of shareholding.
EHI will commence the preparation to be listed on the Stock Exchange of Thailand, while aiming to submit the listing application from year 2027 onwards, depending on its operation results, financial condition, and market conditions. There are no conditions or agreements in place for the company to repurchase shares from the Investor.
EHI will issue warrants to its executives and directors (ESOP–Warrants) at the ratio of not exceeding 4 percent of the total shares issued and sold at an appropriate time. The exercise price for these warrants shall not be lower than THB 12.17 per share.
The investment in EHI by the Investor will support the expansion of the company’s business of budget hotels chain under the brand HOP INN both in Thailand and across the Asia-Pacific region. This will bring about collaboration aiming to create business opportunities to enhance competitive capacity which is in line with the long-term strategic plan to become a leader of budget hotels network in the Asia-Pacific region as previously announced.
