Thailand’s listed real estate developer Principal Capital Pcl is to acquire V Brilliant Group Holding (VB Group) and its subsidiaries from the major shareholder Satita Viddhayakorn, and Peak Development Holdings for 5.79 billion baht ($165.5 million), the company announced.
Chayaporn Luannapavan, corporate secretary, said it will issue 1.68 billion new ordinary shares to Satita at the price of 2.87 baht and issue promissory note for 510.5 billion baht, with a term of 3 years from the issuance date and interest at the rate of not exceeding 1.75 per cent per annum.At the same time, it will issue not exceeding 157.73 million new ordinary shares at the same price to Peak Development.
Upon the completion of transaction, Satita and Peak Development will hold total combined 88.75 per cent of total issued shares.
VB Group has profound experience in real estate development business and owns various high potential real properties such as Bangkok Business Centre Building and Somerset Ekamai Hotel and Serviced Apartment, which is scheduled to commence the operation next year.
The acquisition is aimed to serve the company’s objective to expand its real estate development business and enhance its profitability in the long run.
The deal will be proposed to shareholders’ meeting next month. If it gets the approval, it should complete the transaction in October.