Singha Estate earmarks Bt15 bn for M&A next year
Singha Estate has set aside an M&A (mergers and acquisitions) investment budget of Bt15 billion for next year, up 25 per cent from this year's Bt12 billion.
Chief financial officer Methee Vinichbutr said the company planned to buy hotels and office buildings in Thailand and overseas.
Methee was speaking after a press conference yesterday on the signing of a contract to join with Fico Holding (UK) to buy 26 hotels worth 154.77 million pounds (Bt8.475 billion) from Jupiter Hotel Group.
He said Singha Estate now targeted annual revenue of Bt30 billion by 2019, up from its earlier estimate of Bt20 billion, because the company believes its investments over the next five years will generate high returns.
The company estimates that the deal it signed with Fico to invest in Jupiter Hotel Group will generate average revenue of 16 million pounds a year, for a complete return on investment within 10 years.
For this year, Singha Estate targets revenue of Bt3 billion, up from Bt402.43 million in 2014.
In the first half of this year, the company reported revenue of Bt789 million and a net loss Bt125.24 million.
"We believe that next year the company see a net profit thanks to the revenue from the Jupiter hotel business [which should] average Bt880 million a year," he said.
