ThaiBev's liquor units fork out 1b baht for Thai property firm with land plots
LIQUOR producer Red Bull Distillery (1988) Co and two other subsidiaries of Thai Beverage Public Company (ThaiBev) have together acquired the entire stake in Sub Permpoon 8 Co for 1.03 billion baht (S$45.8 million).
Sub Permpoon 8 operates property rental and development in Thailand, and owns plots of land next to the land of Red Bull Distillery, mainboard-listed ThaiBev said in a filing late on Thursday night.
Bangkok-based Red Bull Distillery has been renting and using the plots owned by Sub Permpoon 8 for its distillery slop treatment pond, wastewater treatment pond and buffer zone. Following the completion of the relevant share transfers, the liquor producer will continue to use the land for those activities.
ThaiBev's controlling shareholders, Charoen Sirivadhanabhakdi and Khunying Wanna Sirivadhanabhakdi, hold an aggregate majority stake in TCC Corporation, the parent company of the existing shareholders of Sub Permpoon 8. Both individuals also indirectly own shares in the existing shareholders of Sub Permpoon 8.
Red Bull Distillery bought the bulk of the shares in the property firm from its existing shareholders - about 25.9 million ordinary shares - while Luckchai Liquor Trading and Simathurakij Co each acquired one ordinary share. Luckchai Liquor and Simathurakij are two distilleries under Red Bull Distillery.
The 1.03 billion baht purchase price was paid in cash by the three ThaiBev subsidiaries, funded with internal cash flows. The amount was arrived at after taking into consideration, among other things, the earnings, financial position and management experience of Sub Permpoon 8 and the appraised fair market value of the land plots of some 1.06 billion baht.
Red Bull Distillery is one of three liquor business groups within ThaiBev.
Shares of ThaiBev rose 1.5 Singapore cents or 1.9 per cent to close at 81.5 cents on Thursday, before the announcement.
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