Frasers Centrepoint's board approves potential investment in Thailand
FRASERS Centrepoint's (FCL) board has approved a potential strategic investment in Golden Land Property Development Public Company (Gold), which is listed on the Stock Exchange of Thailand.
FCL will invest 4.97 billion baht (approximately S$196 million) for the subscription of new ordinary shares in Gold at 7.25 baht per share. This represents a premium of 1.4 per cent over the last closing price of Gold's shares on Nov 6.
Currently, Univentures Public Company (UV) holds 55.7 per cent of Gold. Adelfos Company, owned by Panote Sirivadhanabhakdi and Thapana Sirivadhanabhakdi on a 50:50 basis, is a major shareholder of UV.
Mr Panote Sirivadhanabhakdi is a director of FCL, and both he and Mr Thapana Sirivadhanabhakdi are immediate family members of business magnate Charoen Sirivadhanabhakdi and Khunying Wanna Sirivadhanabhakdi, who are directors and controlling shareholders of FCL.
If the deal goes through, FCL will hold about 29.5 per cent of the enlarged issued share capital of Gold while UV will hold approximately 39.3 per cent.
Gold's businesses comprise residential and commercial property development, as well as property management and property advisory services, in Thailand.
"Having examined Gold's business profile, track record and management record, the Board considers (Gold) to be complementary to FCL's business profile and would present a suitable opportunity for FCL to re-enter the Thai residential and commercial property markets," Frasers said.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
UBS weighs synthetic risk transfer amid capital boost proposals
Oil settles higher on supply concerns in the Mid-East, economic woes subdue gains
S-Reits falter as investors weigh possibility of zero rate cuts in 2024
CapitaLand Investment posts total revenue of S$650 million for Q1
Europe: Stoxx 600 logs best day in three months as banks shine
US: Stocks rally after strong tech results