Sino-Thai Engineering and Construction Pcl (STEC), a Thai-listed construction company, is set to acquire Mo Chit Land Company from BTS Group’s subsidiary U City Pcl for 4.32 billion baht ($135.85 million).
STEC’s board of directors approved the development of the 7.79-billion baht ($245.12 million) Mo Chit Complex project on Mo Chit Land’s plots in Chana District, Bangkok, according to a disclosure made on the Stock Exchange of Thailand.
The project includes 36-storeyed twin towers with three levels of basement including a connecting path and a skywalk linking to BTS Mo Chit.
STEC’s president Pakpoom Srichamni said, the company will look at a range of financing options including working capital, cash from operating business, loan from financial institutions and long term loan debentures to fund the deal.
U City reported an accumulated loss of 630 million baht as of end of 2018. Once this acquisition is completed, it will turn into profit for the first time since 2015.