U City Unveils New Identity Reflecting its Transformation towards the Financial Services Sector and Announces Capital Reduction
On 30 September 2022, U City Public Company Limited (“the Company” or “U City”) announced its new identity under the name of Rabbit Holdings Public Company Limited to reflect the change in long-term business direction to primarily focus on the financial services business. As part of its transformation approach, U City’s disposition of its property portfolio included the sale of Anantara Chiang Mai Resort & Spa in January 2022, the sale of shares of its European hotel operator subsidiaries in September, and several land plots, totalling the value of more than 2,100 million Baht. On the same day of the rebranding announcement, U City has also declared the sale of its joint venture company (JV) and subsidiary totalling 7 companies that have jointly invested in real estate development projects with Noble Development Public Company Limited (“Noble”) to Thanulux Public Company Limited ("TNL") with a price of approximately 532 million Baht. If including the shareholder loans that U City has with the JV and the subsidiary mentioned above that TNL has to pay U City by June 2023, the total transaction value will be more than 2,400 million Baht.
Ms. Soraya Satiangoset, Acting CEO of U City said, “Changing the company's name will help create a new identity and provide a new perspective to shareholders and investors. Furthermore, this rebranding will reassure that the real estate business is no longer the Company's core business. U City or Rabbit Holdings has transformed its business direction to become the spearhead of BTS Group’s financial services business. The objective is to create synergies among companies within BTS Group and the partnership network under BTS Group's 3M strategy.”
Ms. Soraya added, “Announcing the sale of investment in 7 joint venture companies to TNL is part of the Company’s transformation. The Company will be able to recognise sales revenue immediately without having to wait until the project development is completed. The sale proceeds will provide more liquidity to the Company with the additional source of funds for future investments in the financial services business, which will be our long-term core business. In the past, we have made investments, such as investing in Rabbit Life, a life insurance company as well as the investment in Jay Mart PCL and Singer Thailand PCL. As for the remaining real estate assets, the Company will gradually dispose within 3 years.”
In addition, the Company will reduce the registered capital and reduce the par value of share from 3.20 Baht per share to 1.40 Baht per share. As a result, the amount of registered capital and paid-up capital post-transaction will be reduced to 47,941,667,251.80 Baht and 44,546,837,795.60 Baht, respectively. Reducing capital and par value will help the Company compensate for the share discount on preferred shares (U-P) of 56,000 million Baht, which will make no restriction on dividend payment.
However, all transactions are subject to shareholder approval. The Company has set the date for the Extraordinary General Meeting of Shareholders No. 1/2022 on Thursday, 24 November 2022 at 2:00 p.m., 23rd floor at Centara Grand & Bangkok Convention Centre at Central World. It will determine the date of the names of shareholders entitled to attend the meeting (Record Date) on Tuesday, 18 October 2022.