TRIS Rating places the “AA” company and issue ratings on Central Pattana PLC (CPN) on CreditAlert with a “developing” implication. The credit alert follows CPN’s announcement on 12 September 2018 that CPN Pattaya Co., Ltd., a wholly-owned subsidiary of CPN, has acquired 50.43% of the outstanding shares of Grand Canal Land PLC (GLAND). The transaction is worth Bt10,162 million. CPN Pattaya has submitted a tender offer for the remaining shares (49.57%) of GLAND, worth up to Bt9,987 million based on the purchase price of Bt3.1 per share. The tender offer period will end on 31 October 2018. If CPN acquires 100% of GLAND, the total transaction is estimated at Bt20,149 million. CPN plans to fund this acquisition by debt.
TRIS Rating views that the acquisition will support CPN’s business expansion, leveraging GLAND’s prime property portfolio. However, the funding structure and the impact from the transactions on CPN’s financial profile still need to be fully assessed.
TRIS Rating will resolve the CreditAlert once the tender offer has already been finalized and the impact from GLAND acquisition on CPN’s creditworthiness has been thoroughly analyzed.
Up to Bt7,100 million senior unsecured debentures due within 15 years AA CREDITALERT: Developing
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