- Conditional Voluntary Tender Offer (“VTO”) to acquire up to 100% of shares in Golden Land at THB8.50 per share, subject to related regulatory approval and approval by extraordinary general meeting of shareholders of Frasers Property Thailand to be convened on or around 7th May 2019.
- The proposed transaction is to transform Frasers Property Thailand into an integrated real estate platform with complementary real estate services, spanning across logistics & industrial, residential, commercial and hospitality properties.
- Adding Golden Land’s strength and development expertise allows Frasers Property Thailand to offer a unique proposition to the customers
THAILAND, 25 FEBRUARY 2019
Frasers Property (Thailand) Public Company Limited or “FPT” (formerly known as TICON) announced today that its board of directors, on 22 February 2019, has approved the Conditional Voluntary Tender Offer (“VTO”) to acquire up to 100% of issued securities of a SET-listed Golden Land Property Development Plc (“Golden Land”) at THB8.50 per share in cash. The VTO is subject to regulatory approvals and approval by extraordinary general meeting of shareholders of FPT to be convened on or around 7 May 2019.
Rationale and Benefits of the Proposed Transaction
- Expansion into adjacent businesses, in line with FPT’s strategy to build an integrated real estate platform with multi-segment property execution capabilities
- Immediate scale with the acquisition of a quality platform in residential, commercial and hospitality property sectors
- Balanced and diversified portfolio across asset classes and customer segments
- Enhances FPT’s earnings and return on equity
Transformational Growth of Frasers Property Thailand
Mr. Sopon Racharaksa, President of Frasers Property Thailand said, “This strategic move is in line with Frasers Property Thailand’s previously announced strategic direction to be an integrated real estate property developer with complementary real estate services. The businesses of FPT and Golden Land complement each other, giving us the multi-segment capabilities across logistics, industrial and commercial space value chain. I see greater benefits to offer more breadth and depth in our service offerings as we continue to build experiences that matter to our customers, partners, staff and shareholders. The enlarged scale will also enable us to attract the best talent and offer exciting growth career opportunities for our staff across multiple asset classes.”
Post-transaction based on the success of the VTO, the combined platform will generate revenue in excess of THB20 billion with total assets above THB80 billion. FPT will see immediate scale and extended development capabilities in logistics and industrial, residential, commercial and hospitality. The combined capabilities and resources will enable both firms to better capitalize on the landbank in FPT, especially the township development opportunities arising from its recent 4,300 rai land acquisition along Bangna Road and its other sizeable pipeline of development projects in Thailand’s Eastern Economic Corridor. In addition, Golden Land which has a portfolio of income-producing operating assets can immediately contribute to FPT’s financial performance.
Golden Land is a leading residential and commercial property development company in Thailand. Since 2013, the management of Golden Land has led the company’s growth in revenue of 58% with new flagship development projects such as SamYan Mitr Town, FYI Centre and Sathorn Square. Golden Land also has a shareholding interests in attractive hospitality assets including Mayfair Marriott Executive Apartment, The Ascott Sathorn and Modena by Fraser Bangkok. The company now has 41 active residential projects in Bangkok and vicinity, and plans to launch 25 new projects valued THB26 billion in 2019.
The company has an experienced and well-regarded management team as well as a platform that is well-developed, scalable, and profitable.
