Cash-strapped SET-listed developer Pace Development Corporation Plc plans to sell land plots in Hokkaido worth 595 million baht to repay short-term and long-term loans.
The company yesterday reported to the Stock Exchange of Thailand (SET) that the board of directors had approved a disposition of 31 plots totalling 87 rai in Niseko subdistrict, Hokkaido province.
The sales price is 2.05 billion yen (595 million baht). The transaction is planned for this month, with Richforest International Investments Ltd pegged as the buyer.
The proceeds will be used to repay debt and serve as working capital, helping the company reduce its interest burden and maintenance costs.
In the report, the company said it bought the land in 2016 at a price of 529 million baht by issuing 176.35 million newly-issued ordinary shares with an offering price of 3 baht each.
The company's board of directors also turned down a request for an extension of the due diligence period with SET-listed developer Sansiri Plc (SIRI).
Pace executed a memorandum of understanding for negotiations on sale of the Nimit Langsuan Project and 53 residential units in the Ritz-Carlton Residences, Bangkok, set within the MahaNakhon skyscraper, with SIRI.
Pace had previously extended the due diligence period to Feb 5, 2018, but SIRI requested an extension. Pace declined that request, saying the initial period was sufficient.
SIRI was entitled to express its intention to purchase the assets at the proposed price to Pace within three days of the due date.
Wanchak Buranasiri, Sansiri's chief financial officer, last week said the company wanted to negotiate the price after it surveyed the Nimit Langsuan project and offered units at the Ritz-Carlton.
"The price is too high," he said.
SIRI shares closed yesterday on the SET at 2.08 baht, down four satang, in trade worth 265 million baht.
PACE shares had a notice pending sign on the SET.
