Central Plaza Hotel Public Company Limited (CENTEL) has announced the complete transaction in the company’s acquisition of Brown Dessert Co., Ltd.’s shares for a total of 70 million baht on August 31, 2020.
The company stated that the Board of Directors of CENTEL passed a resolution on November 8, 2019, to approve an investment in Brown Dessert Co,. Ltd. by Central Restaurants Group Co., Ltd. (CRG); a subsidiary which had the authorized share capital at 620 million baht and wholly-owned by CENTEL, in order to enter into the negotiation to invest in Brown Dessert Co,. Ltd. which operates the dessert cafe named “Brown Cafe”.
CRG invested in ordinary shares of Brown Dessert Co,. Ltd. by acquiring 18,952 ordinary shares from its shareholders and subscribing for the new share capital of 28,976 shares. The total investment represents 51% of total issued and paid up shares capital with the total investment of 65-70 million baht.
Brown Dessert Co,. Ltd. operates the dessert cafe named “Brown Cafe”. At present, the major revenue streams are from 11 dessert cafe in Thailand, 10 of which are owned and operated by CENTEL, whereas the other one is operated by a franchise. CENTEL recently signed an agreement to grant franchise rights to a franchise to operate Brown Cafe in Malaysia.
CENTEL expects return on investment from existing operations and from business expansion for dessert and beverage under “Brown Cafe”. This is in line with CENTEL’s expansion strategy to grow food portfolios.