CP Axtra has disclosed further statement through the Stock Exchange of Thailand to reiterate its careful assessment and consideration on the investment in Happitat at the Forestias that raised concerns in the market over the valuation and appropriateness of this move.
Following the disclosure made by CP Axtra Public Company Limited (SET: CPAXT) to the Stock Exchange of Thailand on 13 December 2024 that the company had established a direct subsidiary company, Axtra Growth Plus Co., Ltd., (AGP) which would hold 100% of shares (excluding one share) in Happitat at the Forestias Co., Ltd. (HATF), which develops a mixed-use real estate project under the name “The Happitat”.
CPAXT has provided additional information regarding the inquiry from the Stock Exchange of Thailand that this is a joint investment by the company in 95% of the total issued shares of AGP by way of subscription of new shares in cash in an amount of approximately THB 7,970 million. MQDC Town Corporation Limited subscribed for 5% of the total issued shares of AGP by way of subscription of new shares by payment in kind in the form of 100% of shares (excluding one share) in HATF.
The Board of Directors of CPAXT has approved the company to enter into this joint investment after careful consideration on the appropriateness and value of this joint investment, taking into account the value of the assets of The Happitat Project appraised by property valuers approved by the Securities and Exchange Commission.
CPAXT’s Board of Directors had an opinion that this investment would be beneficial to the company and would further complement the mixed used real estate development business of the Company. The Audit Committee of the company did not have any different opinion from the board’s opinion.
