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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.