CPN Has Secured the “Land” to Conquer “Central” Bangkok
51% of GLAND’s shares have been taken over by CPN in the day of the tender offer. 
17 ก.ย. 2561

The tender had just been announced from Central Pattana Public Company Limited (CPN) to takeover Grand Canal Land Public Company Limited (GLAND), and the deal was completed within a day with a total of 20 billion baht investment.
 
It is a very interesting case to see how much will CPN acquire from taking over one of Dusit Thani Public Company Limited (DTC)’s subsidiary. From what we can see is that the total 200 rai (320,000 sqm.) of GLAND’s assets in Don muang, Phahon Yothin, and Rama IX are freehold assets.
But the most charming aspect of GLAND that eagerly made CPN invest 20 billion baht (with 18 billion baht debt) is the continually developing of many Bangkok’s upcoming CBD (central business district) and all of these lands have great locations for offices, retail businesses and residential areas.
 
The location that CPN needs to focus on is the 50 rai (80,000 sqm) G-Complex in Rama IX that has G-Tower and The Super Tower projects inside the complex and 8 rai (12,800 sqm) of residential area.
The 60 rai (96,000 sqm.) land in Don Muang is a single house project for 2 rai (3,200 sqm.), and the rest that is left unattended has potential for a mix-use project. Meanwhile, the land on Phahon Yothin is close to Central Ladprao shopping mall that GLAND has a joint venture with BTS Group Holding Public Company Limited (BTS).
 
A clear picture we see is a synergy between CPN and GLAND as their assets are very close to each other, and it will be a great opportunity to optimize their businesses.
The purchase of DTC’s shares in May and the takeover of GLAND can be considered an acquisition in in land rights development with high potential, which is an approach strategy from CPN to expand its business in CBD.
 
Investors may wonder whether CPN or GLAND’s shares that should they invest in. Let’s say that GLAND’s shares is now reaching the top of what is supposed to be the tender offer price at ฿3.10/share. As of now, it is too late for a speculation of GLAND’s shares.
Unless CPN will increase its tender price, which is not likely to happen. 
However, a speculation for CPN’s shares is possible, but its financial status from taking over GLAND must be taken in consideration. There is the 20 billion baht loan from BBL for GLAND takeover, and the company’s very own debt of 59 billion baht to make a total of 79 billion baht in debt, not to mention the 17.7 billion baht debt that GLAND holds.
Turns out CPN will have about 100 billion in debt altogether, which will more or less affect CPN’s finance. How much profit will CPN recognize from GLAND to cover its debt? We will have to see about that.
 