Sino-Thai Engineering and Construction Public Company Limited (STEC) announced the Board of Directors Meeting on September 24, 2020 has approved the purchase of the Business of STIT Co., Ltd. (STIT) from STP&I Public Company Limited (STPI) by way of acquisition of entire (100%) 13,500,000 shares with the nominal par value of 10 Baht each at the total purchase price of 674,487,000 Baht with the interest expenses amounting to 19,042,576 Baht, totaling 693,529,576 Baht.
STEC will pay in cash by installment payment within 3 years and the interest rate of 1.68 per year, hence the Company will make STIT stock pledge as the same amount of remaining for guarantee and redeem gradually after payment has been completed.
This transaction will support core business of STEC since a rapid expansion of construction business that presented its backlog over 100,000 million baht, especially the infrastructure projects and Eastern Economic Corridor (EEC) projects that machines and equipment might have used to the new coming projects.
Moreover, STEC stated that the acquisition will also raise Equity IRR at 16.53% and the business has a chance of being listed at the SET and valued added to the business as well.
In addition, the transaction must be approved from the Extraordinary General Meeting of Shareholders which will be held on November 27, 2020, STPI and STEC could process the transaction and the Company shall pay the 1st installment including processing the shares’ transfer by the end of December 2020.