prepared by Investor Relations department BTS Group Holdings PCL
Property Update
Rationale - U City is positioned as the dedicated BTS Group property vehicle
- Unclear segregation of property business (and in some case conflict of
interest) between BTS Group and U City and inefficient resource allocation
- U City has limited growth opportunities and limited residential opportunities
CURRENT SITUATION U City Capital Increase Entire Business Transfer (EBT)
- f Unicorn Enterprises (UE)
Disposal of U City Assets
U City becomes the dedicated property development and investment vehicle for BTSG
- As U City’s current property business is limited to hotels and office rental,
new assets to be acquired from Unicorn will allow U City to expand its revenue stream and serve larger base of customers More efficient resource allocation and better management of property business
- Consolidation of property opportunities in one vehicle allows for higher
efficiency and economies of scale in each business
KEY RESTRUCTURING TRANSACTION: BENEFIT TO BTSG & U CITY
UNICORN ENTERPRISE (UNICORN OR UE) Property for sale (mostly sold out) Property-related services Hospitality Land banks Joint venture i.e. JV Sansiri, International school, AHS Projects and land banks under study Hospitality Other assets
100% 35.64%
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“U City becomes the dedicated property vehicle for BTS Group” OBJECTIVE: OUR ACTION
To eliminate potential conflict between U City and BTSG property business
- Unicorn will discontinue its business, dissolve and liquidate after the EBT
- BTSG will grant ROFR, Call Option and Management Agreement and/or
Sales Agency Agreement to U City on assets remaining at BTSG Office buildings Office buildings Property Restructuring
“Expected gain to BTS Group from restructuring transaction is approx. THB 2,000mn (after elim) upon transaction completion in 4Q 2017/18”