TICON increases capital of THB 13.23 billion to a Strategic Partner And to increase its financial strength for further expansion

Tuesday 11 October 2016 14:55
TICON's Board approved the capital increase and allotment of 735 million shares to Frasers Property Holding (Thailand) Co., Ltd., which is a wholly owned subsidiary of Frasers Centrepoint Limited (FCL), one of the leading global real estate companies from Singapore. The transaction is to add a strategic partner and to financially strengthen the company to become the industrial property development leader in ASEAN.

Mr. Virapan Pulges, the Managing Director of TICON Industrial Connection Pcl., (TICON) revealed that on 7 October 2016, the Company's Board of Directors approved the capital increase and allotment of new shares in a private placement to Frasers Property Holdings (Thailand) Co., Ltd. The subscription will be made of 735 million new shares at price of 18 Baht per share with a totaling of 13.23 billion Baht. The subscription price represents the Premium of 5.9% to the last closing price on 3 October 2016; and Premium of 11.2% and 13.6% to 15-day and 30-day volume weighted average price, respectively.

The Transaction is subject to the approval of the Securities and Exchange Commission (SEC) and TICON's shareholders. TICON will convene an Extraordinary General Meeting on 19 December 2016 for its shareholders to vote on the capital increase proposal and a whitewash to waive the mandatory tender offer requirement under Thai takeover laws. After the subscription of the newly issued ordinary shares, Frasers Property Holdings (Thailand) Co., Ltd. will hold approximately 40% of TICON's enlarged share capital.

The capital increase will strengthen and enhance TICON's financial flexibility for its business expansion. The new capital will substantially lower TICON's debt-to-equity ratio. Additionally, with FCL as its strategic partner, TICON will be well positioned to explore its opportunity in both Thailand and the AEC region such as Indonesia, Vietnam and Myanmar, which should subsequently give better return to the Company and its shareholders in the longer term.

Frasers Property Holding (Thailand) Co., Ltd. is a wholly owned subsidiary of Frasers Centrepoint Limited (FCL), a company listed on the Main Board of the Singapore Exchange Securities Trading Limited. FCL is one of Singapore's top property companies with total assets of S$23 billion as at 30 June 2016. FCL's business focuses on residential, commercial, retail and industrial properties in Singapore and Australia, and the hospitality business spanning more than 80 cities across North Asia, Southeast Asia, Australia, Europe and Middle-East. The proposed investment in TICON is in line with FCL's strategic direction to grow its business overseas and its recurring income. Thailand is one of FCL's selected secondary markets that FCL believe offers positive growth prospects. Thailand is currently the second largest ASEAN economy by GDP, and has favourable macro-economic factors that will be positive for industrial and logistics asset classes over the long term. This investment in TICON will open up long-term opportunities for TICON and FCL to explore its growth business and step into the leading in the industrial property in Thailand and AEC markets as well.