Osotspa rises on news of major shareholder deals

Shares of Osotspa (OSP), a leading consumer products conglomerate, rose 2.86 per cent to 36 baht Wednesday, a day after the company underwent a major shareholder restructuring.

Osotspa was the third most-traded stock of the morning session, accounting for over 1.19 billion baht. The price peaked at 36.50 baht after opening, up 4.28 per cent, before settling ahead of the lunch break.

Late Tuesday the company notified the Stock Exchange of Thailand that two shareholders, Orizon Limited and Petch Osathanugrah, earlier that day sold 381.4 million ordinary shares of Osotspa, or 12.69 per cent of paid-up capital, via private placement.

Orizon Limited sold 261 million ordinary shares, 8.69 per cent of total paid-up capital, while Petch sold another 120 million ordinary shares, or 4.00 per cent. The stock closed up 2.94 per cent Tuesday at 35 baht.

According to the statement, Niti Osathanugrah purchased 215 million ordinary shares, or 7.16 per cent of issued shares, while the rest was sold to other investors. This brought Niti to stand as the biggest shareholder of Osotspa with 23.08 per cent.

Tisco Securities maintains a ‘Hold’ rating on OSP at the target price of 39 baht, saying that the share restructuring would not affect operations as it was mostly between Osathanugrah family members.

“We expect an average net profit growth of OSP at 6 per cent in 2021 and 2022 driven by its vitamin drink product C-Vitt,” said the Tisco analyst. However, he pointed out that there was downside risk from the operation in Myanmar where OSP earned 8 per cent of its total revenues.

Every 10-per-cent drop in revenue from Myanmar will reduce OSP’s earning-per-share by 0.8 per cent, added Tisco. The OSP’s net profit forecast from Tisco stood at 3.57 million baht.

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