Singapore bun-maker BreadTalk said on Tuesday it plans to acquire a total of 380 million shares in plastic packaging maker NPPG (Thailand) at 1.50 Thai baht a share, for a total of 570 million baht (S$24.28 million or US$17.95 million).
The deal will be in two tranches, which will be purchased from eight separate minority shareholders, the company said in a filing to SGX after the market close on Tuesday.
The first tranche will be for 285 million shares, or an around 15 percent stake, which is set to be completed by the end of April, while the second tranche of 95 million shares, or around a 5 percent stake, is expected to be completed by the end of January 2020, BreadTalk said in the filing.
The deal will be completed through BreadTalk’s wholly owned subsidiary BTG Vault, which will assume two seats on NPPG’s board after the first tranche is finished, and another two after the completion of the second tranche, the filing said.
“Our acquisition of this strategic stake in NPPG will provide us with a valuable beachhead in the Thailand and potential Mekong-region markets,” Henry Chu, group CEO of BreadTalk, said in the statement. “NPPG’s access to a wide coverage of convenience stores in Thailand will offer the group a ready distribution network for our products in future. Its strength in the food packaging and frozen food businesses will also be complementary to us.”
Chirdsak Kukiattinum, NPPG’s executive committee chairman, said that BreadTalk’s expertise in the retail food and beverage segment would help his company expand its Dean and Deluca cafe footprint. NPPG’s other food and restaurant brands include A&W and Kitchen Plus, the filing said.
After the deal’s completion, NPPG will become an associated company of BTG Vault, it said. Under the deal, Suraphong Triamchanchai and VR Lifestyle have granted BTG Vault a put option which allows the BreadTalk subsidiary to require them to purchase all or part of the 380 million NPPG shares, exercisable for a year after the completion of the tranches, the filing said.