With Southeast Asian economies and markets surging, some of the region’s richest men are looking to take back control of what they lost after the Asian financial crisis in the late 1990s.
In Thailand, tycoon Dhanin Chearavanont, the country’s richest man, said Tuesday that he would offer $6.6 billion for domestic retailer Siam Makro PCL MAKRO.TH -0.53%–a company he helped create with Dutch company SHV Holdings NV in 1988. Mr. Dhanin sold his holdings in Siam Makro in the wake of the 1997 financial crisis, which devastated Thailand and its currency, wiping out many businesses.
Mr. Dhanin’s bid follows a similar move by Indonesia’s Salim Group, which in December took back direct control of automaker Indomobil Sukses Internasional IMAS.JK -0.95%, the country’s second-largest automotive group by sales, in an $809.3 million deal.
The Salim Group, led by billionaire Anthony Salim, son of deceased founder Sudono, was forced to sell a number of assets in the aftermath of the region’s financial crisis to repay debts, including a government bailout of the family’s Bank Central Asia. The group also owns food and agribusiness giant PT Indofood Sukses Makmur.
Now, more than a decade after the financial crisis devastated Southeast Asia, its economies and companies are in much better shape–and those companies have shown in recent months that they’re ready to make big deals to capitalize on the region’s rapidly growing middle class.
April 23 is written as 23/4/56 in Thailand, this year being 2556 in the Buddhist calendar, and the date makes for the ascending order of 23456.
It could turn out to be a special day for Dhanin Chearavanont, the chairman of Charoen Pokphand (CP) Group who struck a major deal to purchase the cash-and-carry chain Makro for US$6.6 billion.
Perhaps not too surprisingly, the value of the takeover bid from the Thai group’s subsidiary CP All Plc comes to 188.88 billion baht. Chinese consider the number 8 to be lucky. For example, the 2008 Beijing Olympics began on 8/8/2008 at 8:08:08pm.
People who know Mr Dhanin know he is an avid follower of feng shui and would never fail to determine the right time to buy the right business.
The acquisition, which marks the biggest ever in Thailand’s retail industry, will see CP All pay 787 baht a share, about 17% above market value.
Large Shopping Malls in Bangkok Will Be Closed until July 25th
Shopping malls under the Mall Group, including all branches of The Mall, the Emporium, Emquartier and Paragon Department Store, are also closed for 14 days, from today, except for supermarkets, food courts, pharmacy shops, eateries (take-out and delivery only), banks, mobile phone shops and vaccination sites.
Downside risks loom for Thai economy due to Prolonged COVID-19 Outbreak
The most important issue for the Thai economy at present would be the procurement and distribution of appropriate vaccines adequately and timely.
The Bank of Thailand (BoT) has revealed that Thailand’s economy faces significant downside risks, because a prolonged COVID-19 outbreak could cause the economy to underperform the baseline projection, squeezing business liquidity and slowing employment.(more…)
Subscribe via Email
Thai baht becoming the region’s worst-hit currency in COVID pandemic
According to data from its tourism ministry as well as the World Bank, Thailand had only a little over 34,000...
Asia’s slow rate of vaccination is a thorn in the region’s economic recovery
Southeast Asia has been hit badly. Daily infections for Indonesia, Thailand, Vietnam are at their worst, on a seven-day moving...
TAT expects 850 billion baht ($25.7 bln) in tourism revenue after successful reopening
The Tourism Authority of Thailand (TAT) has set this year’s revenue target at 850 billion baht, 300 billion of which...
Download 1xBet mobile and play all over the world
Placing profitable bets or playing in a casino is now possible comfortably even without being tied to a computer. It...
3 ways Asia can recover from the COVID-19 pandemic faster
Countries in the East Asia and Pacific region will benefit from cooperation in three major areas: vaccine deployment, reviving sectors...