DTC Pours ฿495M. to Buy LVM Holdings, Enhancing Service Businesses

Dusit Thani Public Company Limited (DTC) has reported to the Stock Exchange of Thailand (SET) of its investment in LVM Holdings Pte. Ltd. (“LVM Holdings”) consisting of 9 companies incorporated in several countries in South East Asia region engaged in the business of marketing, booking, and full-service management of luxury villas under Elite Havens brand. Current portfolios villas are in Indonesia, Thailand, Maldives and Sri Lanka.

LVM Holdings has just entered into Japan market with the future expansion plan enter into Australia and New Zealand. In this regard, Dusit Overseas Company Limited, a subsidiary of DTC incorporated in Hong Kong has executed a share purchase agreement on 7 September 2018 with the sellers, who are not a connected persons of DTC, in order to acquire all shares in LVM Holdings, a company incorporated in Singapore who is an ultimate holding company of Elite Havens Group whereby LVM Holdings directly and indirectly holds shares in all 9 companies.

 

DTC makes further clarification that this investment is subject to the number of material condition precedents stipulated under the share purchase agreement, among other things, the seller must procure that the persons who are currently entitled to purchase shares in LVM Holdings waive all of their rights thereof. Accordingly, this investment will be completed when all of the aforementioned conditions are met, which is expected to occur on 14 September 2018.

The investment value before tax is approximately USD 15,000,000 equaling approximately THB 495,000,000 (calculated by conversion rate of THB 33 to USD 1.) The purchase price of the shares in LVM Holdings is the price which DTC negotiated with the seller based on a discounted cash flow method taking into account of various factors including but not limited to business turnover in the past years, nature and risks associated with the business, growth opportunity in the industry, and future plans of management.

 

The investment in LVM Holdings is in line with the growth strategy of DTC which aims to seek new business opportunities in order to enhance full potential of provision of services undertaken by DTC and the group.