CPN goes big on Gland shares
Central Pattana Public Company Limited (CPN) announced the acquisition of 50.43 per cent of Gland shares costing Bt10 billion and prepares to table a tender offer for the remaining shares of GLAND at Bt3.1 per share.
The acquisition will bolster CPN’s business expansion plan through mixed-use development to support and reinforce the value of its shopping mall business.
Preecha Ekkunagul, CEO of CPN, stated that CPN Pattaya Co Ltd, a subsidiary of CPN, has acquired shares of Grand Canal Land Public Company Limited (Gland) from its major shareholders and will prepare a mandatory tender offer for the remaining shares.
The acquisition of Gland, a developer of properties for sale and for rental and services comprising office buildings, hotel, residential and retail areas, as well as several real estate projects under development and land bank, will support CPN’s growth strategy through mixed-use development projects to provide a return to shareholders in the long-term.
Naparat Sriwanvit, chief financial officer at CPN, said the firm will make a tender offer for the remaining 3,221 million shares for Bt9.987 billion.
The transaction will be wholly funded by loans from financial institutions.
CPN will submit a declaration of intent to acquire a controlling interest of the business within one day after the announcement is made public and will submit a tender offer within seven days after the declaration of intent to acquire a controlling interest of the business.
CPN has set a five-year growth strategy that aims to achieve a compounded annual growth rate in revenue of approximately 13 per cent per year.
The strategic direction to expand the business through mixed-use development, such as new shopping malls, enhancement of existing shopping malls, rental rate escalations, incremental gains from operations management and residential project development, are key drivers to realise the target.
Furthermore, CPN studied the opportunities to expand its business internationally to accommodate its sustainable growth aspiration.