OSP: The Step Back of Osathanugrah

When people talking about Osotspa Public Company Limited (OSP), first thing that always comes to mind without any doubt is Osathanugrah, as the family has been ruling this company for nearly 129 years, likes an image of OSP.   

 

But in the past month, there was 2 big changes happening to OSP…

 

Firstly, the changing of shareholding proportion, on June 29, 2020 the Orizon Group or known as “Osathanugrah Family”, i.e. 1) Orizon Limited 2) Mr. Petch Osathanugrah 3) Mr. Puree Osathanugrah and 4) Mr. Purat Osathanugrah have sold the ordinary shares for a total amount of 90 million shares equivalent to 3%, decreased from approx. 30.69% to approx. 27.69%.

 

OSP stocks have sold at average price of at ฿37/share with the total value of 3,330 million baht. Osathanugrah Family was expected to gain a profit from this transaction of 3,240 million baht as the par value of its share is ฿1/share.   

  

Lastly, OSP announced the change of management structure, as “Mr.Petch” has resigned from Chairman of the Executive Committee and CEO to be Vice Chairman of the Board of Directors…paving the way for an outsider likes “Mrs. Kannikar Chalitaporn” to be Chairperson of the Executive Committee and “Mr. Thana Chaiprasit” to be acting CEO…interesting!    

 

OSP’s financial performances in recent years…in 2018, the firm posted a total revenue of 25,163 million baht and the core profit was at 3,005 million baht. In 2019, the profit was at 3,259 million baht with a total income of 26,350 million baht and in 1Q2020, OSP reported a revenue of 6,967 million with the net profit of 925 million baht. 

 

The step back of “Osathanugrah Family” was somehow expected to show a significant change as Osathanugrah Family has been monopolised OSP for more than a hundred year. 

 

Interestingly, how will OSP change/look like under new leaders…? 

 

However, the sale of ordinary shares by “Osathanugrah” is still questioned by investors as…if the company remain strong as usual…so, why the major shareholder decided to dispose its assets…?