CPN acquires shares of SF from Major

CPN acquires shares of SF from Major

Megabangna mall is located on Bang Na-Trat Road.
Megabangna mall is located on Bang Na-Trat Road.

Central Pattana Plc (CPN) has signed a memorandum of understanding (MoU) to acquire ordinary shares of Siam Future Development (SF) from Major Cineplex Group, equal to 30.36% of all issued shares at a price of 12 baht per share or 7.7 billion baht.

The transaction is expected to be completed at the end of August, with a tender offer for the remaining shares filed afterwards.

The acquisition reinforces CPN's property development portfolio, with two large regional malls -- Central WestGate and Megabangna -- helping the company grow together with partners like Ikea.

Together with other businesses within Central Group, the company plans to expand its community mall business and develop new projects on various land banks in Bangkok's central business district and in other major cities across Thailand.

"This acquisition marks a historic step for CPN as it moves to create short- and long-term growth. The company is happy with the MoU with Major Cineplex, which has long been a business partner of the company, and believes this deal will benefit both SF and Major shareholders," said Preecha Ekkunagul, president and chief executive of CPN.

"CPN has a strong capital structure and the ability to manage its business with high efficiency. After the acquisition, the net debt-to-equity ratio will be lower than one and the company will continue to develop more mixed-use development projects and look for new investment opportunities that will benefit all stakeholders under the 'Imagining Better Futures For All' organisational goal."

Vicha Poolvaraluk, director and chief executive of Major Cineplex Group, said the deal provides a good return to both businesses and shareholders in both the short and long term.

"The deal will also strengthen our ability to expand our business and reinforce our leadership in the cinema and entertainment complex business," he said.

"We are happy our business partner CPN, which is a leader in the real estate sector, will become the major shareholder of SF."

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