When the Lion Grabs the Dragon: How Will CPN's Acquisition of GLAND Expand the Lion's Kingdom?

TerraBKK Research has been following the real estate news closely since late August regarding whether CPN would indeed proceed with a tender offer to acquire GLAND. Today, we have a clear answer: “Yes”.

This morning, September 12, 2018, both companies, Grand Canal Land Public Company Limited and Central Pattana Public Company Limited, announced a temporary suspension of their stock trading (marked with H) due to ongoing negotiations regarding the terms and conclusions of the share purchase, which are significant for shareholder projects and may impact investor decisions. The announcement to the stock market included the following details:

CPN: Central Pattana Public Company Limited

GLAND: Grand Canal Land Public Company Limited

 

Recently, this afternoon, September 12, 2018, the negotiation details were finalized, with GLAND signing a share purchase agreement to sell a total of 3,278,132,406 shares, representing 50.43% of all issued and outstanding shares at a price of 3.10 baht to CPN Pattaya Company Limited, a subsidiary fully owned by Central Pattana Public Company Limited (CPN).

Additionally, CPN has informed that they are studying the possibility of delisting GLAND from the stock exchange, although no conclusion has been reached yet. Any updates will be communicated in due course.

It is believed that this will be another significant journey for the Central Group. TerraBKK Research views that with CPN's immense potential, combined with the valuable land assets of GLAND, there are four prime plots that can create mega projects worth over 200 billion baht immediately.

 

Grand Canal Don Mueang

            The Grand Canal Don Mueang project spans over 76 rai and 70.3 square wah, located on Kamphaeng Phet 6 Road, just 1 km from Don Mueang Airport. This location serves as the final gateway connecting Bangkok and Rangsit, with an average land price of 60,000-100,000 baht/square wah.

Chaeng Watthana Area

            Along Kamphaeng Phet 6 Road, before reaching Miracle Grand Hotel, opposite the Police Club, there is a plot of land awaiting development, approximately 25 rai, with a width of over 500 meters. Currently, the average land price is 150,000-200,000 baht/square wah, but soon, the red line train will pass through, and in the future, the pink line will enhance the area's potential. It wouldn't be surprising to see the land price for this plot soar in the future.

Phahonyothin Area

            This land plot is considered prime real estate, as the green line extension will soon be fully operational, increasing the value and activity in the area, especially around the Lat Phrao-Ratchayothin extension. The land transferred from GLAND to CPN is approximately 49 rai, connecting Phahonyothin Road and Vibhavadi Rangsit Road, making it hard to find such beautiful and large plots. Currently, the land price is around 600,000-800,000 baht/square wah.

 

GRAND RAMA9

            The Grand Rama9 project has a land value of approximately 1.2-1.5 million baht/square wah, transforming the Rama 9 area into the New CBD of Bangkok with various mega projects, including Central Plaza Grand Rama 9, G Tower, The Nine Towers, Unilever Building, and future projects like Super Tower.

 

With GLAND's decision to step back, it opens the door for CPN to expand and surpass both the CP Group and leave the Charoen Group behind strategically. Ultimately, who will be the king of the jungle in Thailand? Let's wait and see!