Magic of M&A Case Study : Selic Corp & PMCS Year 2020
Key Points :
It is a business acquisition. In a business that is an extension of the original business, the deal value of 1,050 million baht is the purchase of shares in PMCT Company, with the owner being a Singaporean. He holds PMCT shares in the name of PMCS Company registered in Singapore. Selic therefore had to buy 100% of the shares in both companies.
Using the Leverage Buyout method, which is using bank money, which is a long-term loan, Termloan 900 million baht, and paying out 150 million baht yourself.
The loan will be divided into 2 parts: the loan in the name of Selic's own company and the PMCT company as well, using the technique of using a temporary loan line from the bank (Briding Loan) to Selic first to buy the business and then give it later. PMCT takes out a loan from the bank and then takes that money and lends it to Selic. Once finished, Selic takes the money and returns the temporary loan (Briding Loan) to the bank. The debt then goes to PMCT who continues to pay the bank The debt will go to PMCT and continue to pay in installments.
Over the past 5 years, PMCS has grown, management costs have decreased. When combined with Selic, debt has decreased from gradually repaying bank debt, then taking PMCS to IPO and using part of the IPO proceeds to repay bank debt.
Selic hardly used his own money, only paid out 15%, got a billion THB business into the portfolio, growing income, growing profits. Stock value rises again
New : Selic Corp Public Company Limited or SELIC acquires 100% of the PMC group worth more than 1 billion baht, hoping for synergy to strengthen the army and expand the customer base. "Khun Ek Suwattanapim" Chief Executive Officer and Ms Yuwadee Iamsontisap Acting Deputy Chief Executive Officer Hoping to continue developing into new products. In the glue-sticker product group Ready to believe that this is an opportunity to increase sales and profits from the business of the group.
Comments