Thailand’s richest tycoon in $6.6B bid for discount retailer | Inquirer Business

Thailand’s richest tycoon in $6.6B bid for discount retailer

/ 07:59 AM April 24, 2013

Dhanin Chearavanont PHOTO FROM THE NATION/ANN

BANGKOK—Thailand’s richest tycoon on Tuesday launched a $6.6 billion takeover bid for Thai discount retailer Siam Makro as rapid economic growth drives a boom in the kingdom’s retail sector.

The agreed bid is the latest mega-deal involving billionaire Dhanin Chearavanont, whose sprawling empire includes a string of convenience stores operated under the 7-Eleven brand.

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Dhanin’s CP All said in a statement that it had agreed to buy a 64.35 percent stake in Siam Makro from SHV of the Netherlands for 787.00 baht ($27.3) per share, and would launch a tender offer for the remainder.

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It comes months after Dhanin’s umbrella group Charoen Pokphand—which began as an agribusiness conglomerate—sealed a deal to buy a $9.4 billion stake in Chinese insurance giant Ping An from HSBC.

In March, Forbes estimated that Dhanin and his family were worth $14.3 billion, making him the richest person in Thailand.

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Founded in 1988, Siam Makro operates dozens of cash and carry stores across Thailand selling food and consumer products to wholesalers, retailers and other customers.

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Dhanin’s group was once its top shareholder but sold out after the financial crisis that rocked Asia in 1997.

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Thai firms are on an acquisition drive, with another billionaire, Charoen Sirivadhanabhakdi, acquiring Singapore conglomerate Fraser & Neave earlier this year.

Thailand’s economy is enjoying rapid economic growth, which hit a record high of 18.9 percent in the fourth quarter of 2012, recovering from the impact of the kingdom’s worst floods in decades.

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TAGS: company, Retail, takeover, Thailand

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