You have to hand it to the management of BTS, they aren’t just sitting on their hands happily bathing in their THB 30 bn worth of cash post the BTSGIF.

In the past few years they’ve bought VGI, IPO’ed VGI, IPO’ed BTSGIF, bought MACO and other co’s through VGI, commenced a share buy back of BTS shares, and now are working closely with NPARK to effectively add liquidity to some of their property holdings

So what are these assets?

  • BTSA and KKP (both subsidiaries of BTS – DOUBLE CHECK THIS) own buildings & 18 rai of land w/ a market value of THB 8-10bn, BTSA owns the Eastin Grand Hotel Sathorn Bangkok, land on Phaholyothin Road (near BTS Mo Chit) and KKP owns land on Phayathai Road (next to BTS Phayathai)

How are they going to do this?

  • PP: Up to 213 bn shares in NPARK @ THB 0.047/share which reps 37.06% of NPARK’s total issued shares
  • Warrants (free) to purchase N-PARK shares, at a ratio of 2 shares: 1 warrant at an exercise price of THB 0.047/share
  • just Cash

Any issues?

  • Well NPARK has a capital call occuring now which consists of an RO of 180 bn new shares for THB 0.035/share ~ THB 6.3 bn

Is this really a good deal?

  • Off the top of my head, sure looks like it, BTS will essentially have majority control of NPARK, their land and hotel assets will/may be developed and they can realise more earnings that way. NPARK should finally have a bit of cash (especially after this RO) and thus should be able to develop the BTS assets without issues.
  • Oh and yes BTS will most likely book capital gains of THB 2-3 bn according to analyst estimates as a result of this.

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