FCL mulls $196m investment into Thai property developer

FCL will become a major shareholder after the deal.

According to Frasers Centrepoint Limited (FCL), its board has approved a potential strategic investment through subscription of new ordinary shares in Golden Land Property (Gold), a public company listed in Thailand.

FCL will invest $196m for the subscription at $0.29, a 1.4% premium over the last closing price of Gold’s shares on November 6.

Members of Thailand’s billionaire Sirivadhanabhakdi family are Gold’s major shareholders. The company is 55.7% owned by Univentures (UV), which is in turn owned by the Sirivadhanabhakdis. Charoen Sirivadhanabhakdi, one of Thailand’s richest men, is a controlling shareholder of FCL.

If FCL and Gold push through with the investment, FCL and UV will respectively hold about 29.5% and 39.3% of the enlarged issued share capital.

Gold comprises of residential and commercial property development, and property management and property advisory services in Thailand. It intends to channel the proceeds from the deal to fund new investment and development of residential projects, reduce gearing and for general corporate funding.

According to Frasers, Gold’s business profile shares a philosophy with FCL “to capture the broad base residential market in the mid-income segment and with a focus on growing recurring income from its commercial property developments.” 

Frasers asserts that FCL’s international expertise coupled with the company’s interest in these areas will complement Gold’s long-term growth objectives.