FCL offers Bt13.23 bn investment in Ticon

FCL’s wholly owned unit, Frasers Property Holdings (Thailand) Co Ltd, is proposing to invest in Ticon via a private placement at a subscription price of Bt18 per share. 

This represents a premium of 5.9 per cent to Ticon’s last closing price on October 3, and 13.6 per cent over its 30-day volume weighted average price.

When the transaction is completed, Frasers Property will hold around 40 per cent of Ticon’s enlarged share capital.

FCL, one of the leading global real estate companies from Singapore, said the proposed investment would extend its exposure in Thailand from residential and commercial/hospitality mixed use developments to the industrial property asset class, and allow it to further grow overseas income.

Ticon has developed and built factories and warehouses in 18 industrial estates and 33 logistics locations in Thailand. It currently owns and manages approximately 2.5 million square metres of industrial space.

Ticon is also the sponsor of three listed property funds and a listed REIT in Thailand with combined assets under management of approximately Bt32.4 billion.

According to Ticon statement yesterday, its board approved the capital increase and allotment of 735 million shares to Frasers Property.

The transaction is designed to add a strategic partner Ticon and financially strengthen the company so it becomes an industrial property development leader in Asean.

Virapan Pulges, the managing director of Ticon, revealed that on Friday the company’s board of directors approved the capital increase and allotment of new shares in a private placement to Frasers Property.

The subscription price represents a premium of 5.9 per cent to the last closing price on October 3, and a premium of 11.2 per cent and 13.6 per cent to the 15-day and 30-day volume-weighted average price, respectively.

The transaction is subject to the approval of the Securities and Exchange Commission (SEC) and Ticon’s shareholders. 

Ticon will convene an extraordinary general meeting on December 19 for its shareholders to vote on the capital increase proposal and a whitewash to waive the mandatory tender offer requirement under Thai take-over laws. 

After the subscription of the newly issued ordinary shares, Frasers Property will hold approximately 40 per cent of Ticon’s enlarged share capital.

The capital increase will strengthen and enhance Ticon’s financial flexibility for its business expansion. The new capital will substantially lower Ticon’s debt-to-equity ratio. 

With FCL as its strategic partner, Ticon will be well positioned to explore opportunities in Thailand and Asean, which should subsequently give better return to the company and its shareholders in the long term.

FCL had total assets of S$23 billion (587 billion) as of June 30. 

FCL’s business focuses on residential, commercial, retail and industrial properties in Singapore and Australia, and its hospitality business spans more than 80 cities across North Asia, Southeast Asia, Australia, Europe and the Middle East.