Board members of the operators of Bangkok's subway and expressway have endorsed the merger of the two companies to bolster their business positions.
BECL managing director Payao Marittanaporn (centre left) and BMCL managing director Sombat Kitjalaksana talks to the press after the boards on Thursday approved the merger plan. (BMCL photo)
Bangkok Metro Plc (BMCL) runs the MRT mass transit network while Bangkok Expressway Plc (BECL) operates the expressway.
BMCL managing director Sombat Kitjalaksana and BECL managing director Payao Marittanaporn said their respective boards on Wednesday approved the merging plan to prepare for the Asean Community, the BMCL said in a statement released on Thursday.
The two firms will hold shareholder meetings to approve the deal, they added.
The Asean Community will be launched at the end of December.
The merger of the two companies will expand business opportunities inside and outside Thailand, increase competitive edges and strengthen the financial position for a new firm whose name is yet to be announced, the statement added.
The board meetings also agreed to the share swap ratios in the new entity, at 8.65537841 shares for each BECL share and 0.42050530 shares for every BMCL share.
The new company could be listed on the Stock Exchange of Thailand by the third quater, according to the statement.
BMCL share slid 13.45% to close at 2.06 baht, on Thursday, while BECL ended trade at 42 baht, declining 1.18%.