Sansiri has confirmed it will not be buying Pace Development’s Nimit Langsuan development as well as 53 units in the Ritz-Carlton Residences at MahaNakhon (pictured), Thailand’s tallest tower.
In a statement to the Stock Exchange of Thailand (SET), Sansiri said it has received insufficient information to consider the purchase price and relevant risks properly.
It also said it had requested to extend the due diligence period for a second time so that it could obtain what it described as “pending information”, but the agreement to extend such period was not agreed by Pace Development.
On November 7 last year, Sansiri notified the SET it has entered into a Memorandum of Understanding for the purchase of Nimit Langsuan project and 53 condominium units within the Ritz-Carlton Residences Bangkok project in MahaNakhon building from Pace Development.
On January 5 this year it asked for, and was given, an extension to continue due diligence for the purchase.
Sansiri’s statement read: “The Company would like to inform that as the Company has conducted the due diligence on the assets until the end of due diligence period on 5 February 2018.”
“However, the Company has not received certain information sufficient for the Company to consider the purchase price and relevant risks properly.”
“The Company already requested to extend the due diligence period in order to obtain such pending information but the agreement to extend such period was not agreed.”
“Therefore, today the Company notified to Pace Development Group that the Company is not satisfied by the due diligence investigation, and the Company will not offer the purchase prices for the assets above.”
“Consequently, the Company will receive the deposit in the amount of THB 322,823,805 in full.”
In a similar statement to the SET, Pace Development confirmed a Board of Directors meeting had considered the due diligence period was appropriate, and enough to verify all information, and disapproved any further extensions.
Pace invited Sansiri to express the intension to purchase the assets with a proposed price within three days.