Sermsuk Plc (SSC), the soft drink maker and distributor, says its major shareholder So Water Co Ltd plans to delist all SSC shares from the Stock Exchange of Thailand (SET) and make a tender offer worth 5.92 billion baht.
SSC informed the SET yesterday that So Water, a subsidiary of Thai Beverage Plc (ThaiBev), would launch the tender offer for the remaining 93,945,680 common shares, or 35.3% of the company, for 63 baht apiece, and then delist SSC from the bourse.
The delisting plan will be submitted for resolution at the extraordinary general shareholders' meeting on Aug 27 where the shareholders of at least 75% of the total issued and paid-up shares of the company must approve the delisting, said the company.
No shareholders can oppose the delisting of shares with votes exceeding 10% of the total issued and paid-up shares of the company, according to the delisting rules.
So Water, a subsidiary of Asia's largest beverage producer, ThaiBev, holds a total of 171,954,804 shares or 64.67% of the total number of issued and sold shares of SSC.
SSC manufactures and distributes est and Sarsi soft drinks, Crystal drinking water, Oishi green tea, 100Plus carbonated soft drink, Jubjai herbal drink, Rock Mountain soda, Ranger energy drink and PowerPlus sport drink.
"Delisting the securities from the stock exchange will help management and business operations be more efficient by reducing various operational steps a listed company must follow," noted the filing to the SET.
"This will result in more flexibility in business management and business decision-making."
The proposal aligns with ThaiBev's plan to restructure the group's operations to increase efficiency in management, added the filing.
The trading volume of SSC's shares on the SET is not large.
"Making a tender offer for all of the company's securities will benefit the liquidity of the company's stock trading by increasing options and selling opportunities for minor shareholders of the company," noted the statement.
"If the company is not listed, this will help reduce costs, fees and duties."