In addition, APAC Realty will subscribe for 1,225,800 new shares in ERA Vietnam Realty, representing 38% of the enlarged issued share capital for a consideration of $1,499,900.
The total consideration of $1.5 million will be funded using internal cashflows. Upon completion of the transaction, Eurocapital and ERA Vietnam will become associates of APAC Realty.
This acquisition came on the back of a series of acquisitions by the group over the past 12 months, including ERA Indonesia, ERA Thailand and ERA Malaysia.
Jack Chua, chairman and CEO of APAC Realty says, “Our entry into Vietnam is another testament to the success of the ERA franchise business model. Our unique franchise model allows the Group to establish the ERA brand name in new markets through a cost-efficient platform."
"Having worked closely with our franchisees to build a strong reputation for quality service and trusted advice, and a track record of success through an expert local team, we would assess if the franchise is ripe for the next phase – an investment by the group," Chua adds.
Shares in APAC Realty closed at 48 cents on Wednesday.
