The Erawan Group Public Company Limited (SET: ERW) has informed the Stock Exchange of Thailand that on 3 October 2024, the company announced the execution of the Shareholders’ Agreement of Erawan Hop Inn Company Limited (EHI), a subsidiary of the Company.
On 31 October 2024, Lapis Hospitality Pte. Ltd., a company managed by Lombard Asia V, L.P., acquired 57,534,247 newly issued ordinary shares of EHI, 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 accordance with the Share Subscription Agreement, and EHI has registered the capital increase at the Department of Business Development, Ministry of Commerce.
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.
According to the statement disclosed by the Stock Exchange of Thailand on October 4, 2024, 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.
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 Lapis Hospitality 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.
