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Frasers Property JV to take 26.1% stake in Ticon; will trigger takeover offer for Thai developer
FRASERS Property on Friday announced that a joint venture (JV) vehicle owned by its indirect Thai subsidiary had entered into an agreement to purchase a 26.1 per cent stake in Ticon Industrial Connection Public Company Limited for 8.569 billion baht (S$358.56 million) from Rojana Industrial Park Public Company Limited.
The stake in Ticon, a developer of integrated industrial properties in South-east Asia, represents approximately 478.7 million ordinary shares in Ticon at a consideration of 17.90 baht apiece.
The JV vehicle - Frasers Assets - is a 49-51 venture of Frasers Property Holdings Thailand and TCC Assets Thailand.
Frasers Property has an existing direct interest of approximately 751 million ordinary shares of Ticon, and through its 49 per cent stake in Frasers Assets, has an existing deemed interest in 40.95 per cent of the share capital of Ticon, the property group said in a filing with the Singapore Exchange on Friday morning.
The completion of the sale will trigger a tender offer for the remaining ordinary shares of Ticon that Frasers and the JV vehicle does not own, with the total amount payable for the remaining stake estimated to be up to 20 billion bhat, said Frasers.
In accordance with the terms of the JV agreement for Frasers Assets, Frasers Property will pay for 49 per cent of the remaining stake of Ticon, and if failing to contribute accordingly will be subject to shareholding ratio dilution.
On Thursday, Frasers Property, formerly known as Frasers Centrepoint, posted a 59 per cent fall in net profit after fair value change and exceptional items in the first quarter.
Frasers Property closed at S$2 on Thursday, down 3 Singapore cents, or 1.5 per cent.