SET-listed Central Pattana Plc (CPN), the development arm of Central Group, has made a tender offer for all securities of Grand Canal Land Plc (GLAND) through wholly owned subsidiary CPN Pattaya Co Ltd, in a deal that could be worth 20.15 billion baht.
A rendition of Grand Canal's G Tower on Rama IX Road. Central Pattana's board approved an acquisition of Grand Canal in a deal worth B20.15bn.
CPN's board of directors on Monday approved an acquisition of 3.28 billion shares or 50.43% of total issued and outstanding shares of Grand Canal by CPN Pattaya at a price of 3.10 baht a share. The amount is worth 10.16 billion baht.
After this transaction is completed, CPN Pattaya is required to make a tender offer for the remaining amount of 3.22 billion shares of Grand Canal, equivalent to 49.56% of total issued and outstanding shares, at a price of 3.10 baht a share. The amount is valued at 9.98 billion baht.
The acquisition was expected to be completed by yesterday.
"After the tender offer, CPN is under a study, which has not reached a conclusion, of de-listing Grand Canal from being a listed company on the Stock Exchange of Thailand (SET)," CPN said in a release. "If the matter [receives] clarification, information shall be disclosed to the SET."
Funds for the acquisition will come from loans and the working capital of CPN.
CPN believes that the transaction will bring benefits to itself and shareholders because the transaction will strengthen the company's financial capacity and expand its cash flow base, thereby boosting sustainable long-term returns, the company said.
Grand Canal's experience and expertise will reinforce CPN's competitiveness and support its investment in larger-scale projects, which will significantly enhance the growth rate and operating results, CPN said.
Grand Canal has operated in real estate and construction since 2009. The company has projects such as The Nine Towers Grand Rama 9 and the Shoppes@Ninth.
Other projects include a high-rise building under development called The Super Tower and a property project under the name of The Belle Sky Condominium.
CPN shares closed yesterday on the SET at 81.25 baht, up 75 satang, in trade worth 412.8 million baht.
GLAND shares closed at 3.06 baht, up eight satang, in trade worth 10.6 billion baht.