Sansiri Public Company Limited (SET: SIRI) announced the sales of some of its subsidiaries to Hyatt Corporation and Hyatt International Corporation to strengthen its financial position.
On August 21, 2024, SIRI disclosed a statement through the Stock Exchange of Thailand, stating that the Board of Directors has approved its direct and indirect subsidiaries the sale of all equity interest held in Standard International Management, LLC. and certain of its respective subsidiaries and Standard International BH Investor, LLC. and certain of its respective subsidiaries to Hyatt Corporation and Hyatt International Corporation.
The total purchase price is approximately up to $355,000,000 or about 12.12 billion baht in which $150,000,000 will be paid upfront at the completion of the transaction.
Meanwhile, an earnout amount of up to $175,000,000 to be paid for new hotels and branded residence under Standard International Management and Standard International BH Investor and certain of their subsidiaries, conditional upon such new projects reaching construction and opening during a certain time frame following the completion of the transaction.
Also, earnout bonus amount of up to $10,000,000 will be eligible for earnout payout, conditional upon the achievement of specific milestones following the completion of the transaction.
Additionally, existing branded residence license fee payment for specific existing pipeline of Standard International Management and Standard International BH Investor and certain of their subsidiaries branded residences projects will be excluded from the transaction and payments passed through to sellers, conditional upon the revenue for such projects being received for a certain time frame following the completion of the transaction.
It is expected that the transaction will be complete by September 2024.
SIRI added that the transaction would be beneficial to the company as it strengthens the company’s financial position by its favorable valuation and unlocks the capital to be redeployed in another interesting opportunity following its strategic goal.
Additionally, this also provides long-term benefits by leveraging Hyatt’s expertise and well-known presence through the various properties of the company which will be managed or franchised under Hyatt as well as other strategic synergies in the future.
