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