Thai retail developer Central Pattana Pcl (CPN) has said it will acquire listed property player Grand Canal Land (GLAND) for 20.14 billion baht ($616.63 million), according to its filing to the Stock Exchange of Thailand on Wednesday.
The company has, through its subsidiary CPN Pattaya, completed the purchase of 50.43 per cent of GLAND shares at the price of 3.10 baht apiece, totaling 10.16 billion baht ($311.3 million).
CPN Pattaya would be required to make a tender offer for the remaining 49.57 per cent at the same price. Following the tender offer, CPN will delist GLAND from the Thai bourse.
The company said, the deal would boost its cash flows. while allowing it to leverage GLAND’s expertise to support its investments.
It has active projects, namely The Ninth Towers Grand Rama 9, the Shoppes@Ninth, a high-rise building under development called The Super Tower and a real property project for sale called The Belle Sky Condominium.
GLAND reported total revenue of 2.8 billion baht ($85.8 million) and net profit of 1.06 billion ($32.5 million) in 2017. Meanwhile, the revenue in the first half of this year was 919 million baht ($28.16 million) and net profit was 94.83 million ($2.91 million).