CP Axtra Public Company Limited (SET: CPAXT) has announced additional information regarding ‘The Happitat’ project via the Stock Exchange of Thailand (SET), with the detail as follows:
Regarding the investment in The Happitat Project by CP Axtra Public Company Limited (the “Company”), the Company would like to express our gratitude for all feedbacks and suggestions received from the investors, The Stock Exchange of Thailand (SET), The Securities and Exchange Commission (SEC), Federation of Thai Capital Market Organizations, Association of Thai Securities Companies, Investment Analysts Association, Association of Investment Management Companies, Thai Listed Companies Association and The Thai Institute of Directors Association. The Company is deeply appreciated in concerns and valuable recommendations and would like to clarify and proceed as follows:
- The establishment of Axtra Growth Plus Co., Ltd. (“AGP”) aims to invest in the Company’s core business, which includes the investment in the Lotus’s Mall Bangna (The Happitat). The Company affirms that this investment is not associated with any other real estate development in The Forestias Project and has no plans to invest in other projects related to Magnolia Quality Development Corporation Limited (MQDC).
- The investment in the Lotus’s Mall Bangna (The Happitat) has been executed in compliance with good governance principle and regulations of the SET and SEC at every stage. This decision was made in accordance with the Company’s standard procedures for considering new projects and/or new store openings, which have consistently aligned with the Company’s operational strategy. In this regard, the Company realizes the concerns expressed by investors, shareholders, bondholders, and all stakeholders, particularly associations and institutions, regarding this investment. These concerns will be carefully considered to enhance the Company’s operation, specifically in improving communication in the future.
The Company reaffirms that operating in wholesale and retail businesses as well as mall management, are in line with our strategic direction and business plan, contributing to long-term sustainable growth. The Company is confident that this investment will generate substantial value and deliver optimal returns to the shareholders while establishing a solid foundation for future business expansion.
- The valuation of assets of the Lotus’s Mall Bangna (The Happitat) was conducted in accordance with market standards, provided by three asset appraisal firms: 15 Biz, Cushman & Wakefield, and CBRE. These firms conducted various valuation methods, while the Company adopting the Income Approach method for the investment, resulted in a lower figure compared to the Cost Approach method, with the average valuation is Baht 12,401 million.
The Company recognizes the importance of providing complete and accurate information and is committed to conduct the business with the utmost consideration for the benefits of consumers, shareholders, bondholders and stakeholders in a balanced, equitable, and fair manner, in compliance with good governance principle. The Company regrets any confusion or misunderstandings that have arisen from this investment and will strive to foster a correct understanding moving forward. The Company will also enhance on improving communication and take suggestions from all institutions and associations into account, to prevent any doubts regarding the Company’s good governance in the future.
