Pattana center in Thailand to take over rival Siam Future shopping center for no less than $ 784 million
Central Pattana takes over shopping center rival Siam Future Development in deal that could cost up to 25.6 billion baht ($ 784 million) as the group consolidates its position as the world’s largest shopping center developer from Thailand.
In a deal announced on Wednesday, Central Pattana said its Central World unit had agreed to buy an initial 52.2% stake in Siam Future from Major Cineplex Group and other shareholders for 13.3 billion baht. The transaction is expected to close by Aug. 30, the company said in its statement to the Thai stock exchange.
After the deal closes, Central World will make a takeover bid for the rest of the company at 12 baht per share, bringing the group’s total investment to 25.6 billion baht.
Siam Future operates 18 shopping centers across Thailand, including Mega Bangna, which counts Swedish furniture retailer IKEA among its tenants. While the company’s net profit rose 20% to 785.5 million baht in the first half of the year ended June 30, the recovery could be short-lived following the government order to close most of its establishments. retail as the country grapples with a resurgence in Covid-19 infections.
Central Group, led by Tos Chirathivat, grandson of the group’s founder, listed its private retail arm Central Retail as the coronavirus began to spread in February 2020. With a net worth of $ 11.6 billion , the Chirathivat family ranked No. 4 on Thailand’s 50 richest list released last month.
Central Retail, which has more than 2,115 stores across Thailand, raised $ 2.5 billion in the country’s largest initial public offering. It also operates an e-commerce site, JD Central, which is a $ 560 million joint venture with China’s JD.com.