RS Invests ฿920Mn to Acquire 35% Stake in “Chase Asia”, Diversifying to Loans Business

RS Public Company Limited (RS) that the Board of Directors’ Meeting held on 18 January 2021 has passed a resolution to approve RSX Co., Ltd., which RS holds shares in a proportion of 99.99% of the total registered capital, to invest in (1) Chase Asia Co., Ltd. (Chase), (2) CF Asia Asset Management Co., Ltd. (CF Asia), (3) Resolution Way Co., Ltd. (R-Way), and (4) Courts Megastore (Thailand) Limited (Courts) by acquiring 2,744,773 newly issued ordinary shares or 35% of total registered capital of Chase following the increase of capital, which is in a total value of Baht 920,000,000. The transaction is initially anticipated to be completed within February 2021. 

 

At present, Chase holds 99.99% of shares in CF Asia, R-Way and Courts respectively. Therefore, the acquisition of newly issued shares in Chase by RSX will result in RS being an indirect shareholder and acquiring the businesses of the target companies.

 

Chase conducts its main business of debt collection, litigation and execution in which holds shares in the proportion of 99% of the total registered capital of 1) CF Asia, a company that conducts business of asset management under the supervision of Bank of Thailand (BOT) 2) R-Way, a provider of personal loan under the supervision of BOT, and acceptance of transfer of non-performing assets of a financial institution and non-bank financial institution and 3) Courts, a provider of personal loan under the Civil and Commercial Code which is exempted from obtaining the permission for personal loan under the supervision of BOT.

 

RS foresaw that the abovementioned businesses are the high potential businesses and have the growth opportunity in both prosperous and recession economic conditions, by which the target companies have carried out a full-cycle business operation starting from providing loan, non-performing asset management, debt collection, litigation to execution. In addition, the target companies have operated their respective business to grow strongly as the executives, personnel and team are equipped with knowledge, expertise and full of experience which could generate satisfactory returns to the Company after entering into the transaction. 

 

Additionally, the investment in Chase would lead RS to business alliances and create important synergies which would drive the business growth of the company and target companies. Furthermore, this investment expands the business opportunity of RS into a new business which the company will gain benefits from sharing resources and knowledge development with the target companies for example Telesales team training and the adoption and adjustment of various information technology and operating systems.

 

In addition, the Board of Directors’ Meeting also has passed a resolution to approve RS to enter into the Credit Facility Agreement with Kasikornbank Public Company Limited (KBANK) for the subscription of Newly Issued Shares in RSX Co., Ltd. which is the company’s subsidiary. The subscription price will be used by RSX Co., Ltd. for the purpose of acquisition of Newly Issued Shares in Chase. The Credit Facility Agreement made with KBANK contains neither condition nor obligation which shall have an impact on the interests of shareholders.

 

The type/credit line is a long-term loan not exceeding 1 Billion Baht for a loan term of 7 years. Interest rate is MLR less fixed rate as stipulated in the Agreement and a repayment will be started in the 4th year. The principal will be repaid with equal installments (totally 48 installments).