Bangkok--13 Sep--Central Pattana
Central Pattana Public Company Limited (CPN) announced the acquisition of 50.43% of GLAND shares at the amount of 10 billion Baht and prepares to table a tender offer for the remaining shares of GLAND at 3.10 Baht 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.
Mr. Preecha Ekkunagul, President and Chief Executive Officer 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 for the proportion of 50.43% of total shares at 3.10 Baht per share, or a total amount of 10,162 million Baht, 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 area, 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 return to shareholders in the long-term.
Ms. Naparat Sriwanvit, Chief Financial Officer and Senior Executive Vice President - Finance, Accounting & Risk Management of CPN, revealed that CPN will make a tender offer for the remaining 3,221 million shares, or 49.57% of GLAND's total shares, at the price of 3.10 Baht per share, or for a total amount up to 9,987 million Baht. 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 1 day after the announcement is made public and will submit a tender offer within 7 days after the declaration of intent to acquire a controlling interest of the business.
CPN has set a 5-year (2018-2022) growth strategy that aims to achieve a compounded annual growth rate (CAGR) in revenue of at approximately 13% 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 realize the target. Furthermore, CPN studied the opportunities to expand its business internationally to accommodate its sustainable growth aspiration.