The Chirathivat family has surpassed agribusiness tycoon Dhanin Chearavanont for the top slot among Thailand's richest, according to the "Thailand's 50 Richest" rankings released yesterday by Forbes Thailand magazine.
Embattled fugitive prime minister Thaksin Shinawatra retains his status as the country's 10th-richest man despite a decline in his net worth.
The family that owns Central Group, a retail and hotel conglomerate, jumped to No.1 for the first time, buoyed by 27% growth in group revenue to US$7 billion last year. Suthikiati Chirathivat, vice-chairman of Central Group's supervisory board, was upbeat about the conglomerate's fundamentals.
Dhanin: Debt drops dealmaker
Central Retail Corporation, the country’s largest retailer, is by far Central Group's biggest asset.
The group recently officially opened the 18-billion-baht Central Embassy luxury shopping centre, a new retail landmark at the intersection of Bangkok's Wireless and Phloenchit roads.
Weighed down by debt, Mr Dhanin, who held the top spot for each of the previous four years, has dropped to No.2.
Mr Dhanin was Thailand’s biggest dealmaker last year, spending a combined $16 billion to buy stakes in China's Ping An Insurance and the cash-and-carry wholesaler Siam Makro Plc, paying hefty premiums for both.
Today, that debt-fuelled shopping binge for which his Charoen Pokphand (CP) Group reportedly borrowed $11 billion from abroad looks mistimed.
More importantly, Ping An's stock price fell after CP last November cut its holdings in it to only 14% from 17%.
The biggest gainer in US-dollar terms was the insurance tycoon Vanich Chaiyawan, up by $1.8 billion, as the value of his privately held Thai Life Insurance Plc surged after he sold a stake to Japan’s Meiji Yasuda Life Insurance Co.
While skittish foreign investors are likely to hold back from such mega deals for now, the stock market has remained steady.
Suthikiati: Assuming the mantle
Hence, most of the returnees to the list have added to their wealth, and the billionaires club expanded to 26 from 20 last year.
Three of the nine newcomers debuted with billion-dollar fortunes including Chatri Sophonpanich and Banthoon Lamsam, both hailing from storied banking clans.
Parphan Siriviriyakul of sugar producer Kaset Thai Sugar Co and Tan Passakornnatee, the savvy founder of green tea maker Ichitan Co, were among four new entrants who jumped into the ranks after taking their companies public.
Nopporn Suppipat of Wind Energy Holdings not only made the list but is the youngest of the nine newcomers debuting with billion-dollar fortunes. With Wind Energy operating two wind farms in Nakhon Ratchasima generating a combined 207 megawatts and seven more projects with a combined capacity of almost 650 MW being developed, Mr Nopporn, 43, occupies a green sweet spot.
Helped by generous government subsidies, Wind Energy is already in the black, notching a net profit of $25 million last year. Mr Nopporn is mulling an initial public offering next year to fund a regional expansion, possibly through acquisitions.
In March, a private placement of Wind Energy shares valued the company at $1.2 billion.
That deal propelled Mr Nopporn, who holds a 65% stake, along with his key backer, Pradej Kitti-itsaranon (with 24%), into the ranks of the nation’s richest.
Forbes Thailand said a third of the returnees from last year were poorer such as Phornthep Phornprapha of Siam Motors Co, who felt the pinch of an automobile slowdown.
Eight from last year saw their fortunes drop below the minimum $305 million net worth required to make the cut including Watchai Vilailuck of the telecommunications giant Samart and tile maker Roongroj Saengsastra.
Despite the political turmoil, Forbes Thailand found among wealthy families on the 2014 list, their combined net worth still increased by 15% from 3.16 trillion baht last year, or 25% of Thai GDP.