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BreadTalk Group acquires strategic interest in NPPG (Thailand) Public Company
BREADTALK Group (BTG) will acquire, through a subsidiary, a total of 380 million shares in NPPG (Thailand) Public Company (NPPG), at 1.50 Thai Baht per share.
The transaction will be completed in two tranches. In the first tranche, BTG will purchase 285 million shares at 1.50 THB per share, equivalent to a 15 per cent stake in NPPG, before end-April. In the second tranche, BTG will purchase the remaining 95 million shares at 1.50 THB per share, equivalent to approximately 5 per cent of NPPG shareholding, before end-January 2020.
BTG will initially assume two seats on NPPG's board following the completion of the first tranche.
At 1.50 THB per share, 380 million shares will cost BreadTalk around 570 million Baht (S$24.16 million).
Henry Chu, group chief executive officer of BTG, said: "Thailand is one of our key strategic focus markets, and we find that NPPG has a lot of hidden assets whose intrinsic value could be realised with the right management and expertise. Our acquisition of this strategic stake in NPPG will provide us with a valuable beachhead in the Thailand and potential Mekong region markets. NPPG's access to a wide coverage of convenience stores in Thailand will offer the group a ready distribution network for our products in future. Its strength in the food packaging and frozen food businesses will also be complementary to us."BTG first entered Thailand in 2005. In the last 14 years, it has grown its presence through strategic expansion of BreadTalk bakeries, Food Republic outlets and Din Tai Fung restaurants in Thailand. More recently, the group brought the Song Fa Bak Kut Teh restaurant into the Thailand market at Central World in Bangkok.
Thailand-listed NPPG has expanded its business scope to food and restaurant and has since acquired major brands such as A&W, Kitchen Plus, as well as Dean and Deluca.