Thailand’s furniture maker ECF to buy 51% stake in IT trading firm S-Trek

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East Coast Furnitech Pcl (ECF), a Thai-listed furniture manufacturer, has agreed to acquire up to 51 per cent stake in a major IT trading firm S-Trek (Thailand) for 510 million baht ($16 million).

According to its filing to the Securities and Exchange Commission on Thursday, ECF will divide the payment into two portions via share swap.

First, it will pay 204 million baht to S-Trek by newly issuing 40.8 million shares at the offering price of 5 baht apiece, while the current market price stands at 2.28 baht apiece. For the rest 306 million baht, ECF will give the newly-issued shares at the market price of ECF’s shares at the time of the offering.

The company said, it expects to complete the transaction in the second quarter of this year.

Founded in 1992, S-Trek is a trading company distributing IT and mobile merchandise across Thailand.

ECF expects to recognise the revenue and the profit from S-Trek in 2019. In 2017, S-Trek generated revenue of 4.85 billion ($152.87 million).

Siam City Law Offices GP is the legal advisor to the deal’s due diligence and Hunton Andrews Kurth (Thailand) Ltd is the advisor to the transaction and relevant proceedings.

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