Frasers Centrepoint Ltd. plans to invest about 13.23 billion Thai baht in a Thai logistics developer as part of the Singaporean company's ASEAN push.
The investment will be carried out through Frasers Property Holdings (Thailand) Co. Ltd.'s Oct. 7 conditional share subscription agreement with Ticon Industrial Connection Pcl, under which Frasers will subscribe for up to 735 million TICON shares priced at 18 baht apiece in a private placement. The price is a 5.9% premium to TICON's Oct. 3 closing price.
The subscription, if approved and fully consummated, will give Frasers a 40% stake in TICON's enlarged share capital.
Frasers Group CEO Panote Sirivadhanabhakdi said in a statement that the proposal will allow the company to extend the company's exposure in Thailand to the industrial property market, as it already owns residential and commercial properties in the country through Golden Land Property Development Pcl.
The subscription is subject to the approval of Thailand's Securities and Exchange Commission, and the Thai developer's shareholders will vote on the transaction at a Dec. 19 extraordinary general meeting.
TICON has 18 industrial estates and 33 logistics locations across Thailand. Frasers is listed in Singapore and operates in over 80 cities across North Asia, Southeast Asia, Australia, Europe and the Middle East.
As of Oct. 7, US$1 was equivalent to 34.90 Thai baht.