The Erawan Group Public Company Limited (ERW) announced that the company has executed the agreements for the disposals of the company’s assets which are (1) the disposal of Renaissance Koh Samui Resort and Spa located at No. 208/1 Moo 4, Tambo Maret, Lamai Beach, Koh Samui, Surat Thani (RKS), operated by Erawan Samui, to Infinity Hospitality Holding Company Limited, which is not a connected party of the company, in the amount of 69,499,996 shares or equivalent to 99 percent the total of outstanding shares in Erawan Samui having par value of THB 10 for the total purchase price of THB 531,000,000, and the purchase price will be paid in cash.
(2) The disposal of Ibis Samui Bophut Hotel located at No.197 Moo 1, Bophut Beach, Ko Samui District, Surat Thani (ISM) by selling all assets relating to ISM owned by the company, including but not limited to (1) two plots of land, (2) buildings and constructions, (3) rights and obligations under the Franchise Agreement, (4) ISM employees, and (5) other properties such as furniture, decoration, or any other properties used for the operation of ISM to Infinity North Samui Co., Ltd., which is not a connected party of the company, for the total purchase price of THB 394,000,000, and the purchase price will be paid in cash.
The objective of such disposals is to adhere to the company’s long-term strategy of adjusting the hotel portfolio to focus on investing in the budget hotel segment and increasing the proportion of revenue and profit generated mainly by domestic customers.
The benefits of these asset disposals include cash inflows to support the company’s financial profile which would allow the company to strengthen and be ready for the expansion and development of future projects in accordance with the company’s strategy and operational plans.
Preliminarily, the company expects to complete the transactions for the disposal of shares in Erawan Samui and the disposal of all assets relating to ISM by December 30,2021. After the completion of the transactions for the disposal of shares in Erawan Samui and the disposal of all assets relating to ISM, the company will further report the progress to SET and shareholders on a case-by-case basis.