BANGKOK, Apr 23: CP All Pcl, a Thai convenience store company controlled by the country’s richest man is set to offer 800 baht per share to buy control of wholesaler Siam Makro Pcl, valuing the target at $6.7 billion, people with direct knowledge of the matter told Reuters on Tuesday.
The offer represents a 17.3 percent premium to Siam Makro’s last traded price on Friday, before its shares were halted on Monday pending an announcement.
Siam Makro is controlled by privately held Dutch trading house SHV Holdings. Were the deal to go through, an alliance between Dhanin Chearavanont’s CP All and Siam Makro would be likely to make the wholesale business more competitive.
Earlier on Tuesday, CP All, Thailand’s largest convenience store chain, asked for its shares to be suspending pending an announcement. CP All said its board had approved an acquisition that may have an impact on its share price.
Its shares dropped nearly 6 percent on Monday amid expectations it would buy a stake in Siam Makro, raising concern about the need to raise funds.
Siam Makro has a market value of $5.7 billion. An offer at or near that price would be the largest domestic acquisition ever in Thailand’s retail sector.
($1 = 28.6850 Thai baht)
(AGENCIES)
Follow our WhatsApp channel