Frasers Property associate makes 19.75b baht offer for Golden Land

Singapore

FRASERS Property's indirect associated company is making a conditional voluntary tender offer (VTO) for all the issued securities of Golden Land Property Development for about 19.75 billion baht (S$851.9 million) in cash, subject to regulatory and shareholder approval.

Frasers Property (Thailand) Public Company (FPT) is making an offer of 8.50 baht per share for around 2.32 billion shares to acquire the residential and commercial property development company, Frasers Property said in a regulatory filing on Monday before the market opened.

FPT said that the offer price may be reduced by the amount of dividend paid per share if Golden Land announces its dividend payment before the VTO for the securities takes place, hence it expects to determine the tender offer period in 45 business days.

Frasers Property Holdings (Thailand) Co (FPHT) holds a 39.92 per cent stake in Golden Land and is a major shareholder of FPT. Meanwhile, Univentures Public Company (UV) holds a 39.28 per cent stake in Golden Land. FPT's director Panote Sirivadhana-bhakdi is an indirect major shareholder of UV, holding 50 per cent of shares of Adelfos Co - a shareholder of UV with a 66.01 per cent stake.

Through the proposed transaction, FPT plans to expand into adjacent businesses, in line with its strategy to build an integrated real estate platform with multi-segment property execution capabilities. It also looks to immediately scale up with the acquisition and ensure a balanced and diversified portfolio across asset classes and customer segments, along with enhancing its earnings and return on equity.

Based on the success of the VTO, the combined platform is expected to generate revenue in excess of 20 billion baht with total assets in excess of 80 billion baht post-transaction, the company added.

Combined capabilities and resources will enable both firms to better capitalise on the landbank in FPT, especially with the township development opportunities from its recent 4,300 rai land acquisition along Bangna Road, and other sizeable projects in the pipeline in Thailand's Eastern Economic Corridor.

According to Sopon Racharaksa, president of FPT, the businesses of FPT and Golden Land complement each other, giving the enlarged entity multi-segment capabilities across the logistics, industrial and commercial space value chain.

"The enlarged scale will also enable us to attract the best talent and offer exciting growth career opportunities for our staff across multiple asset classes," Mr Racharaksa added.

Golden Land has seen revenue growth of 58 per cent since 2013, with new flagship development projects. It has shareholding interests in hospitality assets such as Mayfair Marriott Executive Apartment, The Ascott Sathorn and Modena by Fraser Bangkok.

Shares of Frasers Property closed on Monday at S$1.73, up one Singapore cent.