Push for more mergers and acquisitions
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The Securities and Exchange Commission has set up a steering committee to promote mergers and acquisitions, ahead of the promulgation of a law.
Vorapol Socatiyanurak, secretary general of the securities watchdog, said that the steering committee would include representatives from the public and private sectors and experts, who will come up with recommendations for the draft law which still contains some unclear clauses.
“Once obstacles are cleared, more M&As will emerge and this will strengthen private companies’ competitiveness in the international arena,” he said at the seminar on "M&A: Success Factor of Thai Business", hosted by the SEC and the Stock Exchange of Thailand.
In his opening speech, Deputy Prime Minister and Finance Minister Kittiratt NaRanong said that M&A was a national agenda, providing a tool for companies at all levels to leapfrog their competitiveness and the nation’s competitiveness. In itself, M&A can boost private companies’ attraction among local and foreign investors, he added.
On January 4, the Yingluck government approved the draft law, which focuses on tax incentives.
SET President Charamporn Jotikasthira added that companies’ organic growth is not enough to withstand fiercer competition. M&A is an option to achieve the economy of scale, for example a wider distribution network to some companies. Their growth would then reflect in market capitalisation and overall liquidity in the stock market.
The seminar featured key executives who share their experiences. Recordings of the seminar are available at www.set.or.th/mna.
