CP All confirms buying Makro
CP All Plc, the owner of 7-Eleven stores in Thailand, has agreed to pay about US$6.6 billion to acquire Siam Makro Plc, putting control of the discount retailer back in the hands of billionaire Dhanin Chearavanont.
- Published: 23/04/2013 at 11:03 AM
- Newspaper section: breakingnews
Tuk-tuk drivers wait for customers at Makro’s Charan Sanitwong branch on Monday. (Photo by Panumas Sanguanwong)
CP All, controlled by Dhanin's Charoen Pokphand Group, will pay 787 baht a share for the 64% of Siam Makro owned by SHV Holdings NV, the company said on Tuesday in its notification to the Stock Exchange of Thailand. It will also make a tender offer to other shareholders at the same price, a 15% premium to Siam Makro's share price of 682 baht before it was suspended from trading on Monday.
Both sides will sign an agreement at 2pm in Bangkok but Mr Dhanin already signed the acquisition deal with executive of Netherlands-based SHV in Hong Kong on Tuesday morning.
In another letter to the SET, CP All says the board of directors of CP All has passed a resolution on April 22, on the approval of the acquisition and disposition of material assets which are important and may have an impact on the company's share price and the investment decision of shareholders or investors. The company requested a temporary suspension of trading for its shares on the Thai bourse.
Thailand's companies, with almost five times as much cash now as a decade ago, have struck some of Asia's largest deals in the past year. The acquisition of Siam Makro brings spending by Thai companies to more than $31 billion, after CP Group's $9.4 billion purchase of a stake in China's Ping An Insurance (Group) Co and an $11.4 billion takeover of Singapore's Fraser & Neave Ltd by billionaire Charoen Sirivadhanabhakdi, data compiled by Bloomberg show.
The acquisition tops the $5.5 billion purchase of PTT Aromatics & Refining Plc by PTT Chemical Plc in 2011, to become the largest on record in Thailand, data compiled by Bloomberg show.
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