PACE Aims to Leave Dean & Deluca China in C.P. Group’s Care

Pace Development Corporation Public Company Limited (PACE) informs the Stock Exchange of Thailand (SET) that on August 29, 2018, Dean & DeLuca China (HK) Co., Limited, a subsidiary in which PACE indirectly holds 100% of the shares, has entered into the framework agreement with Kinghill Overseas Holding Limited (“Kinghill”), which is a subsidiary of Charoen Pokphand Group and is not a connected person of PACE.

Under the framework agreement, the parties agree to negotiate with the view of entering into a master franchise agreement granting Kinghill and/or its affiliates the exclusive right to act as the master franchisor of Dean & DeLuca cafés and Dean & DeLuca Market in the People’s Republic of China with expansion of 500 stores for a period of 5 years. Kinghill and/or its affiliates may extend the term under the conditions as specified in the master franchise agreement.
The entering into of the master franchise agreement shall be completed within 60 days from the date of the framework agreement or as extended by the parties, and is subject to conditions precedents specified therein.

In addition, Kinghill has expressed an interest in investing in the Subsidiary and has entered into the framework agreement with Dean & DeLuca Asia (Thailand) Co., Ltd., which directly holds 100 percent of the shares in the Subsidiary, under which the parties agree to negotiate with the view of having Dean & DeLuca Asia (Thailand) Co., Ltd. enter into the option agreement granting Kinghill and/or affiliates the option to purchase up to 49 percent of the shares in the Subsidiary, with two tranches of options divided into 30 percent of the shares and 19 percent of the shares.