Jaymart Pcl (JMART) plans to make a tender offer to acquire the remaining 75 per cent stake in SET-listed Singer Thailand Pcl next year to strengthen its management control and expand the customer base of SG Capital, a subsidiary of Singer Thailand.
It has set aside over 1 billion baht ($30.7 million) to fund the acquisition and has hired Asia Plus Securities to figure out the process before applying for the tender offer, according to a Bangkok Post report.
JMART acquired a 24.99 per cent stake in Singer Thailand Pcl in 2015. As part of the same deal, a group of investors including Lombard Investments and Thai NVDR also acquired 15 per cent from Singer (Thailand) B.V.
Once the latest transaction is completed, it will merge 200 distribution outlets of Singer with 250 outlets of Jaymart. Besides, it plans to get SG Capital and J Fintech, a personal loan service provider of JAMRT, listed on the Thai bourse by 2019.
JMART plans to expand SG Capital’s services from lending to Singer’s customers to mortgages and pawnshop services, Jaymart chief executive Adisak Sukhumvitaya told the media. Meanwhile, J Fintech is expected to get the license to provide nano loan services, starting from 1,000 baht ($30.7) per week, in 2018.
JMART has set up a new subsidiary, J Ventures, to develop the applications, acquire IT firms and invest in startups, focusing on big data, artificial intelligence, e-wallet, blockchain and credit scoring.
So far, it has spent around 50 million baht ($1.53 million) on developing the J-Money application and acquiring 10 per cent stakes in Thai e-wallet developer Deep Pocket.