Feb 2021 Acquisition

Shareholders approved acquisitions of two world-class hotels

Shareholders approve the acquisition of a 51% stake in two world-class hospitality assets on the Chao Phraya River: “Four Seasons Hotel Bangkok” and “Capella Bangkok,” worth a combined THB 2.8 billion. Mr Tommy Taechaubol, Managing Director of Bound and Beyond, announced the plan to move ahead with the shift into the hospitality sector in a bold move designed to generate and realise revenue immediately on behalf of shareholders.

Shareholders approved acquisitions of two world-class hotels

PDI shareholders voted approval of the plan to acquire a 51% stake in two world-class, brand-new hotels on Chao Phraya River: “Four Seasons” and “Capella” worth combining 2.8 billion baht and sell its solar farm investments in three subsidiaries to BAFS Clean Energy for 1.7 billion baht. They also gave the green light to the capital increase plan to 6.02 billion baht from 3.01 billion baht by issuing 301.33 million new shares, of which 226 million shares are for existing shareholders and the remaining 75.33 billion shares for the conversion of PDI-W2 warrants into newly issued shares. Mr Tommy Taechaubol, Managing Director of PDI, announced the plan to move ahead the hotel business to generate and realise revenue immediately. He is confident in this worthwhile investment, which will build added value to PDI’s businesses and support sustainable growth.

Mr Tommy Taechaubol, Managing Director of Padaeng Industry Public Company Limited or PDI, reveals that the No1/2021 extra-ordinary shareholders meeting on February 1, 2021 had a resolution to approve the investment plan in Urban Resort Hotel Co (URH) and Waterfront Hotel Co (WFH) for 51% of 5.5 billion baht in registered and paid-up capital, equal to the 2.805 billion baht of investment. URH and WFH hold land and property rights as well as all permissions related to Four Seasons Hotel Bangkok at Chao Phraya River managed by Four Seasons brand and Capella Hotel Bangkok managed by Capella brand.

Additionally, the shareholders meeting approved the divestment plan in three PDI Energy’s subsidiaries; ATC Enviro Co (ATCE), PDI Mae Ramat Co (PDIMR) and P.P. Solar (Nong-No) Co (PPS) to BAFS Clean Energy Corporation (BC) for approximately 1.7 billion baht.

Moreover, the 3.013-billion-baht capital increase plan also got approval to increase the registered capital from 3.013 billion baht to 6.026 billion baht by issuing 301,333,466 new shares with the 10-baht par value. Of the total newly issued shares, 226,000,100 shares will be allocated to existing shareholders at the right offering ratio of 1 old share to 1 new share at the offering price of 10 baht per share.

The remaining 75,333,366 shares will accommodate the conversion of PDI-W2 warrants by existing shareholders who want to exercise the warrants into shares at the ratio of 3 newly issued shares to 1 warrant. The exercise ratio of 1 warrant is to 1 ordinary share and the exercise price is 10 baht per share.

Mr Tommy state that “the acquisition of the two world class hotels will mark a new beginning for PDI in the hospitality sector. The investment has the potential to generate strong returns in the medium term after the hotel industry recovers from the COVID-19 pandemic”. After the transaction closes, the company will continue with its plan to divest its non-income generating assets, and develop its 209-room hotel under its own brand in Bangkok’s Sathorn area. The Sathorn project is valued at 1.5 billion baht and is expected to finish construction within 2024.