Frasers Centrepoint to invest S$520 mil in Thai developer TICON

SINGAPORE (Oct 10): Property company Frasers Centrepoint Limited (FCL) says its subsidiary, Frasers Property Holdings (Thailand) (FPHT), on Friday signed an agreement to subscribe for up to 735 million new shares of TICON Industrial Connection Public Company Limited for THB 13.23 billion (S$520 million).

TICON is a Stock Exchange of Thailand (SET) listed developer and owner of industrial properties in Thailand, currently owning and managing 2.5 million sqm of industrial space. The company is also the sponsor of three property funds and a REIT in Thailand with combined assets under management of THB 32.4 billion.

FPHT will hold approximately 40% of TICON’s enlarged share capital upon completion of the transaction, which is subject to the approval of Securities and Exchange Commission, Thailand (SEC) and TICON’s shareholders.

The proposed investment is in line with FCL’s strategic direction to grow its business overseas and its recurring income, says FCL’s group CEO Panote Sirivadhanabhakdi in a Monday statement.

“Thailand is one of FCL’s selected secondary markets that we believe offers positive growth prospects… With this proposed investment in TICON, FCL can extend the Group’s exposure in Thailand to the industrial market sector as well,” comments Sirivadhanabhakdi.

“TICON is a strategic fit for FCL and provides a platform for FCL to harness its industrial know-how to capture opportunities in the industrial properties sector in Thailand and the AEC region,” he adds.

In December last year, the group acquired 29.5% of another SET-listed property company, Golden Land, through a 4.97 billion baht (S$196 million) new capital injection.

FCL says TICON will convene an Extraordinary General Meeting (EGM) on Dec 19 for its shareholders to vote on the capital increase proposal and a whitewash to waive the mandatory tender offer requirement under Thai takeover laws.

Shares of FCL closed flat at S$1.50 on Friday. — theedgemarkets.com.sg