Sub Sri Thai (SST), a listed company, has taken control of Greyhound and its food business for Bt1.853 billion.
In a statement to the Stock Exchange of Thailand, the company and its subsidiary Mudman Co would acquire all shares of Greyhound Co and all shares of its subsidiary, Greyhound Cafe.
SST's board of directors approved the transaction on June 10.
"The acquisition provides the company an opportunity to strengthen its
position in food and beverage business, enlarge customer base, leverage on its strong operational platform to expand to international market, and gain vital access to fashion and apparels business. The company will have its own brand in addition to the existing franchise business creating strong potentials for future business growth. The acquisition will not only enhance the growth prospects and improve internal cash flow of the
company, but also enable the Company to achieve a more favorable risk profile through portfolio diversification," SST said in the statement.
SST's business deals mainly with document and property storage service, rental service and warehouse service.
The transaction followed the share purchase agreement struck by both sides on June 12, 2013.
Greyhound was established on in 1980 as a designer, manufacturer, and
distributor of modern, stylish, trendy, and cutting edge lifestyle apparel under “Greyhound” and “Playhound” brands, targeting mid-to-high customer group. The merchandises are distributed through 17stores in Thailand, including those located in leading department stores such as Siam Paragon, Isetan, and Central World. They are also exported to overseas market such as South Korea, Singapore, and Indonesia.
Established in 1996, Greyhound Cafe operates trendy and stylish restaurant business under the names of "Greyhound Cafe", "Another Hound Cafe", "Sweet Hound" and "Ground-hey". There are 10 branches in Thailand, 5 franchised branches in Hong Kong, and 2 in China.
SST paid Bt1.265 billion in cash and covered the remaining Bt588 million with 1.3 billion shares or a 15.67 per cent stake in Mudman.