CP Axtra Public Company Limited (SET: CPAXT) announced yesterday that its Board of Directors approved the internal business restructuring plan of amalgamation between the company and Ek-Chai Distribution System.
CPAXT will accept the transfer of the entire business (EBT) of Lotus’s Stores (Thailand) Co., Ltd. (“Lotus’s Thailand”), the company’s indirect subsidiary, amounting to Baht 7,680 million. Afterward, CPAXT will proceed with the amalgamation with Ek-Chai Distribution System into the newly formed a new company.
The proposal to shareholders will be made at the meeting on 29 March. If approved, minority shareholders can sell shares to CPALL in late June or early July. The amalgamation and listing of new shares are expected to be done in 4Q24.
The new company will have total outstanding shares of 10,428 million, compared to CPAXT’s outstanding shares of 10,580 million, which implies a swap ratio of 0.986.
After the shareholder restructure, CPALL will remain the largest shareholder of at least 59.92%, followed by CP Group at 15.96%, CPF at 8.85% and minority shareholders at 15.27%.
