CPN board approves 1:1 par split, new shares
Move to capitalise on opportunities
Central Pattana's board yesterday approved a 1:1 par split and the issuance of up to 130.4 million new shares post-par split, representing no more than 2.9 per cent of CPN's enlarged share capital.
"We believe that this is the right time to engage in a capital increase, which will allow us to capitalise on investment opportunities while maintaining financial discipline and balance sheet strength. As Thailand's leading retail developer, CPN has a strong track record in delivering growth and return to its shareholders," said Kobchai Chirathivat, president and chief executive officer.
The capital increase will also reaffirm CPN's position as the country's leading retail property developer, he said.
The raising of investment capital is to facilitate CPN's future expansions, both in existing and new shopping-mall projects. The company normally invests about Bt13 billion annually, including the development of three or four new malls every year.
CPN's par value will be reduced from Bt1 to Bt0.50 per share. Shares outstanding will increase from 2.18 billion to 4.36 billion post split.
Subsequent to the par split, the company will offer and allocate up to 130.4 million new shares in a private placement to institutional investors and/or specific investors. The offering price will be determined via book-building to achieve a market driven price. The proceeds will allow CPN to pursue new investment opportunities in addition to existing investment plans.
"CPN is a growth-driven company and an important factor in the development and growth of Thailand and Thai society," Kobchai said. "The company's projects help boost Thailand's growth in many aspects, particularly promoting the economy, increasing gross domestic product, building growth in communities, creating jobs and leading to relevant investments in residential, real estate and commercial projects.
"CPN is constantly looking for growth by evaluating and considering multiple investment opportunities. Our objective in making investments is to offer a world-class rewarding experience for our customers, as well as generate superior returns to shareholders," he said.
The resolutions are subject to approval at the annual shareholders' meeting on April 26.
This is the first time in 10 years that CPN has moved to raise capital. In 2003, the company mobilised Bt8 billion to turn the World Trade Center at Ratchaprasong Intersection into CentralWorld.
At that time, it issued preferred shares to Thailand Equity Fund. After the transaction was completed, raising Thailand Equity Fund's stake to 8.2 per cent, the Chirathivat family's holdings in CPN was reduced to 60 per cent from 66 per cent.