CPN Pattaya to acquire Grand Canal Land for Bt20.14 billion
CENTRAL PATTANA PLC’S subsidiary CPN Pattaya has signed a memorandum of understanding to acquire all shares of Grand Canal Land (GLAND) at Bt3.10 apiece, totalling Bt20.14 billion, according to the company’s report to the Stock Exchange of Thailand yesterday.
Central Pattana Plc holds a 100-per-cent stake in CPN Pattaya Co Ltd.
According to the report, the company’s board of directors met on August 10 and approved the acquisition of GLAND by CPN Pattaya. The company will tender an offer soon.
Following the deal, it was resolved that CPN Pattaya has acquired a total of 3,278,132,406 shares, equal to 50.43 per cent of the total issued and outstanding shares of GLAND from individuals and legal entities at Bt3.10 per share, for a total amount of Bt10.16 billion.
In this regard, CPN Pattaya has entered into a share sale and purchase agreement with the sellers yesterday and expects to complete the purchase of GLAND shares, together with all rights attached to them free of encumbrances by yesterday.
The completion of this transaction is subject to the |terms and conditions of the share sale and purchase agreement, which include the termination rights of the relevant parties.
The investors selling GLAND shares to CPN Pattaya Co Ltd include Charoenkrit Enterprise Co Ltd, Belle Park Residence Co Ltd, Jatersiri Boondicharern, Romani Boondicharern, and Jatemongkol Boondicharern.
Tender offer for remaining shares
It was resolved that after the completion of the transaction, CPN Pattaya would be required to make a tender offer for the remaining 3,221,697,225 shares in GLAND, equivalent to about 49.57 per cent stake, at Bt3.10 per share or worth about Bt9.98 billion.
After the tender offer, CPN would consider whether to delist GLAND from the SET.
GLAND has been in the property business since 2009. GLAND has active projects, namely The Nine Towers Grand Rama 9 and the Shoppes@Ninth, including a high-rise building under development called The Super Tower and a real property project for sale under the name The Belle Sky Condominium.
GLAND has registered capital of Bt6.53 billion and paid-up capital of Bt5.95 billion. At the end of 2017, the company reported total revenue of Bt2.8 billion and net profit of Bt1.06 billion. In the first half of this year, the company reported total revenue of Bt919 million and net profit of Bt94.83 million.
Yesterday, GLAND share closed at Bt3.06 per share, up 2.68 per cent from Tuesday while CPN’s ended at Bt81.25, a rise of 0.93 per cent from Tuesday.
