Thailand Carpet Manufacturing Public Company Limited (SET:TCMC-R) completed the acquisition of 49.9% stake in T.C.H. Suminoe Co., Ltd. from a group of shareholders.
January 02, 2014 at 09:30 am IST
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Thailand Carpet Manufacturing Public Company Limited (SET:TCMC-R) agreed to acquire 49.9% stake in T.C.H. Suminoe Co., Ltd. from a group of shareholders for approximately THB 160 million on September 27, 2013. Under the terms of the deal, Thailand Carpet Manufacturing Public Company Limited will acquire 12.48 million shares of T.C.H. Suminoe Co., Ltd. for THB 13 per share. The group of shareholders includes C.H. Holding Co., Ltd., Pimol Srivikorn, Vikorn Srivikorn, Khunying Sasima Srivikorn, Chaiyut Srivikorn and Taya Teepsuwan. The acquisition will be funded through working capital of Thailand Carpet Manufacturing Public Company Limited. For the year ended December 31, 2012, T.C.H. Suminoe Co., Ltd. reported revenues of THB 1.65 billion, total assets of THB 1.11 billion, net profit of 95.06 million and total common equity of THB 231.2 million.
As on October 2, 2013, Thailand Carpet Manufacturing Public Company Limited (SET:TCMC-R) entered into a contract to acquire 49.9% stake in T.C.H. Suminoe Co., Ltd. from a group of shareholders for approximately THB 160 million. As per the terms of the agreement, an amount of THB 81.09 million shall be paid on the date of transfer of the TCH shares and the remaining amount of THB 81.09 million shall be paid within December 30, 2013. Following the completion of the deal, Khunying Sasima Srivikorn, M.L. Walliwan Varavarn, Chaiyut Srivikorn, Charnchai Thipmanee, Tor Kunchornjun and Boonserm Weesakul will resign from the Board of TCH. The Board of Directors of Thailand Carpet Manufacturing approved the deal on October 16, 2013. The sale and purchase of the shares shall take place within 15 days after the conditions precedent have been fulfilled. The agreement shall be terminated on the 90th day after the date of the agreement if the shares purchase transaction could not be completed. As on October 21, 2013, Jaydee Partners recommended the shareholders of Thailand Carpet to vote in favour of the transaction. Thailand Carpet Manufacturing to approve the deal.
As of October 30, 2013, the contract was amended. As per the terms of contract, Thailand Carpet Manufacturing shall pay the sellers the total purchase price of TCH shares by cashier cheques on the transferring date TCH shares. The sale and purchase of the shares shall take place within 60 days after the conditions precedent have been fulfilled. The agreement shall be terminated on the 120th day after the date of the agreement if the shares purchase transaction could not be completed. The transaction was resolved by Board of Directors of Thailand Carpet Manufacturing Public Company Limited on September 27, 2013. The transaction was approved by the shareholders of Thailand Carpet on November 14, 2013. Jaydee Partners Limited acted as the financial advisor for Thailand Carpet Manufacturing Public Company Limited.
Thailand Carpet Manufacturing Public Company Limited (SET:TCMC-R) completed the acquisition of 49.9% stake in T.C.H. Suminoe Co., Ltd. from a group of shareholders on January 2, 2014.
TCM Corporation Public Company Limited distributes carpets and floor coverings in domestic and international markets. Its segments include TCM Surface, TCM Living and TCM Automotive. TCM Surface segment is engaged in offering hand-woven and machine-woven carpets for indoor decoration, including the flooring materials and sound absorbing products. TCM Living segment is engaged in offering sofa chairs for interior decoration. TCM Automotive segment offers carpet for the floors inside vehicles, and vehicle upholstery fabrics. The Company and its subsidiaries, Royal Thai International Co., Ltd. and a group of the local subsidiary, Royal Thai Surface Co.,Ltd., manufacture, distribute and/or sell various types of rugs and install carpet for flooring and sound absorbing products, including the Axminster Carpet, and hand carpet to decorate hotels, theaters, airports, palaces, and homes, and sell flooring products, including a group of the overseas subsidiary, TCMC HK (2017) Limited.
Thailand Carpet Manufacturing Public Company Limited (SET: TCMC-R) completed the acquisition of 49.9% stake in T.C.H. Suminoe Co., Ltd. from a group of shareholders.