Frasers Property and Thai Beverage (ThaiBev) have, through their subsidiaries, established a new joint venture company (JVCo), Must Be Company. The JVCo is said to be incorporated for the purposes of collaborating in the advancement of technology and digitalisation of both Frasers Property and the ThaiBev Group.
This includes investing in third-party technologies and businesses that are complementary to Frasers Property’s and, or the ThaiBev Group’s key businesses.
On Aug 15, Frasers Property’s wholly-owned subsidiary, Frasers Property Holdings (Thailand), entered into a joint venture agreement (JVA) with Frasers Property Technology (Thailand), Open Innovation and Mee Chai Mee Chok to establish the new JVCo.
FPTECH is a wholly-owned subsidiary of Frasers Property (Thailand), where Frasers Property has a 81.8% deemed interest in. Open Innovation and Mee Chai Mee Chok are both wholly-owned subsidiaries of ThaiBev.
Frasers Property Holdings (Thailand), Frasers Property Holdings (Thailand) and Open Innovation each has a direct shareholding interest of 49.9%, 0.1% and approximately 49.99% respectively. Mee Chai Mee Chok holds the remaining one ordinary share in the JVCo.
The JVCo has an initial registered capital of 50 million baht, which the JV shareholders will pay for in the proportion set out above. Each shareholder has initially paid for 25% of its shareholding in the JV Co in cash.
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The fundings for the JVCo are expected to be financed through internal cash resources and, or borrowings for Frasers Property Holdings (Thailand) and through internally generated funds for ThaiBev.
Potential share subscription in BetterBe Marketplace
As at Aug 16, the JVCo is said to explore a potential share subscription of approximately 2.18 billion baht ($84.27 million) for a 50% stake in BetterBe Marketplace.
BetterBe is a wholly-owned indirect subsidiary of The Siam Cement Public Company Limited, which is listed on the Stock Exchange of Thailand.
Interested person transaction
As ThaiBev is a controlling shareholder and deemed an “interested person” of Frasers Property, the transaction constitutes as an interested person transaction (IPT).
In addition, Frasers Property’s group CEO and director Panote Sirivadhanabhakdi, is a director of ThaiBev.
As at Aug 16, the total value of all IPTs for the financial period from Oct 1, 2021, is approximately $42.65 million, or 0.48% of Frasers Property’s latest net tangible asset (NTA) value based on the company’s financials for the FY2021 ended Sept 30, 2021.
As at 9.34am, shares in Frasers Property and ThaiBev are trading flat at $1.04 and 66 cents respectively.
