Central Pattana is taking over shopping mall rival Siam Future Development in a deal that could cost as much as 25.6 billion baht ($784 million) as the group cements its position as Thailand’s largest shopping mall developer.
In a deal announced on Wednesday, Central Pattana said its unit Central World has agreed to purchase an initial 52.2% stake in Siam Future from Major Cineplex Group and other shareholders at 13.3 billion baht. The transaction is expected to be completed by August 30, the company said in its statement to the Thai bourse.
Following the completion of the deal, Central World will make a tender offer for the rest of the company at 12 baht a 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 ended June 30, the recovery may be short lived following the government’s order to close most retail establishments as the country grapples with a resurgence of Covid-19 infections.
Central Group—which is led by Tos Chirathivat, grandson of the group’s founder—listed its private retail arm Central Retail as the coronavirus started to spread in February 2020. With a net worth of $11.6 billion, the Chirathivat family ranked No. 4 on the list of Thailand’s 50 Richest that was published last month.
Central Retail—which has more than 2,115 stores across Thailand—raised $2.5 billion from in the country’s biggest initial public offering. It also operates e-commerce site, JD Central, which is a $560 million joint venture with China’s JD.com.