SCG Décor, a unit of Siam Cement Group, is preparing to float its shares on the Stock Exchange of Thailand (SET) following a restructuring deal with a subsidiary of Thailand's largest industrial conglomerate.
Mr Numpol says the listing plan should allow the company to expand abroad.
Under the deal, SCG Ceramics (COTTO) would be delisted from the SET as SCG Décor is offering to buy all of Cotto's shares for 2.40 baht apiece, which is higher than Cotto's current price on the Thai bourse. A majority (87%) of Cotto's shareholders approved its delisting plan on Tuesday.
Numpol Malichai, managing director of Cotto and chief executive of SCG Décor, said the move is in line with the plan to strengthen and expand the business across Southeast Asia, with SCG Décor taking the lead in decor surface and sanitaryware sections.
"We expect Cotto's shareholders will accept the tender offer to buy shares from SCG Décor in order to move forward together as a company, increasing our potential in the regional market," said Mr Numpol.
SCG Décor is submitting a filing to the Securities and Exchange Commission as it prepares to float its shares on the bourse.
"Our steps to list on the stock market will increase the strength of the firm and support our goal to become a full-service operator in the decor surface and bathroom business in Southeast Asia. This market is more expansive than in Thailand and the economies are is faring well," he said.
Outside Thailand, SCG Décor has subsidiaries and associates that operate as manufacturers of floor tiles and wall tiles in other countries such as Vietnam, the Philippines and Indonesia, serving regional markets with a total population of more than 560 million.
In 2022, sales increased 2.3 times to 30.9 billion baht, up from 13.2 billion the previous year, with net profit attributable to equity holders growing 2.6 times to 1.16 billion baht, a gain from 449 million baht.
Under the collaboration, the company's retail stores will increase to 142 in Thailand, the Philippines and Indonesia, up from 103 stores in Thailand only. Total assets will surge 3.6 times to 40.6 billion baht, up from 11.3 billion.
"SCG Décor plans to combine forces between companies in the group to increase efficiency in cost management," said Mr Numpol.
"We are confident SCG Décor's strength as a leading company in the surface decoration and bathroom business regionally combining with affiliated companies can create stable growth and benefit shareholders and stakeholders."