Page 23 - BTSGroup ONE REPORT 2021/22_EN

BTS Group Holdings Public Company Limited 1.5 Important Events during the Past Three Years 21
Annual Report 2021/22

• In December 2020, BTS Group disposed of some of its land bank at Thana • In October - December 2021, following U City’s business restructuring,
City to a joint venture between SPI (41%), Noble Development PCL (Noble) (40%) U City revisited its strategy and is refocusing its capital and resources
and the Company (19%) with registered capital of THB 1,000mn. into “the financial services” industry. U City has initially invested
Net gain from the sale of THB 1,593mn was recognised in 3Q 2020/21. a) in 75.0% of Advance Life Assurance Public Company Limited (A LIFE)
- life insurance business for retail customers. A LIFE has become U
U City City’s subsidiary and U City began to recognise revenue from A LIFE
from October 2021 onwards.
• On 30 April 2019, U City PLC (U City) entered into a share sales and
purchase agreement to acquire a hotel portfolio (Arcona Hotel Portfolio) b) THB 7.2bn or equivalent to 24.9% in Singer Thailand PCL (Singer) and
which incorporates the operating leases of 17 existing hotels (1,792 room THB 4.1bn or equivalent to 9.9% in Jaymart in December 2021.
keys) and operating lease of 2 new hotels (251 room keys). All the hotels Following the abovementioned strategy, In December 2021, U City, Vienna
are located in Germany and Switzerland and are managed under the Arcona House Capital GmbH and Lombard Estate Holding Limited entered into a Sale
and Steigenberger brands. However, as part of its business restructuring, and Purchase Agreement with HR Neunte Hotel Estate Holdings GmbH, HRG
U City divested the majority of its hotel property in 2021. Hotels Sechste Management GmbH, HR Zehnte Hotel Estate Holdings GmbH
• On 24 May 2019, U City signed the amendment to the agreement in and ALL Beteiligungsgesellschaft mbH, to dispose of ordinary shares in Vienna
relation to Roi Chak Sam project development. Roi Chak Sam project will House Group hotel business as well as the liabilities under shareholder loan
be a luxurious 5-star hotel project in a rare, historic, colonial-era heritage for a total purchase price of approximately EUR 137,577436.24 (or equivalent
building located along the Chao Phraya Riverside on Charoen Krung road. to THB 5,229,524,717.64). The completion of the sale of the Vienna House
Construction kicked-off in February 2021 and is expected to be completed Hotel Group business is expected in 2Q 2022.
in 2025.
• On 14 December 2020, the outbreak of the COVID-19 pandemic has had Food and Beverage Business
a significant negative impact on U City’s financial position, operating result
as well as current and future cash flow. U City’s Board of Directors’ • In April 2021, Turtle 23 Group, BTS Group’s subsidiary, invested 25.0%
Meeting deemed it appropriate to propose to U City’s shareholders in F&B business with Chef Ton, a one Michelin Star chef. Currently, there
meeting to consider and approve the disposal assets under U City and are 6 restaurants, including Baan, NUSARA, Mayrai, Lahnyai, ThepNakorn
its subsidiaries totaling of 39 items. and ThepSamut.
• On 25 May 2021, following the issuing and offering of preferred shares to
the existing common shareholders and preferred shareholders (RO) during
12-21 May 2021, U City recorded proceeds from the capital increase
(after deducting all expenses) of THB 15,725mn. The purpose of the capital
increase is for partially debt repayment, working capital, as well as investment
in U City’s present and future projects.