SCG offers Bt10 bn for Siam Global House

Siam Global House stocks a wide range of products, including building materials and decorative products, appliances and equipment for construction and maintenance, as well as housing, building and landscape decorations.
SCG, through its wholly owned subsidiary SCG Distribution Co, will become the second-largest shareholder of Siam Global House after the Suriyawanakul family.
SCG Distribution on Sunday signed a deal to take a stake of 30.01-33.4 per cent in Siam Global House, according to Siam Cement’s filing yesterday to the Stock Exchange of Thailand.
The purchase is to be structured as a private placement of 224 million shares at Bt14 per share and a partial tender offer for 391 million to 467 million shares at Bt14 each and 47.5 million to 55.6 million warrants at Bt9.30 per warrant.
The retail business for building materials is expected to enjoy high rates of growth due to changing consumer behaviour. SCG aims to be Siam Global House’s sustainable strategic partner, while enhancing its capabilities and opportunities to expand across the Asean region, including Thailand, chief executive officer Kan Trakulhoon said.
Siam Global House was incorporated in Roi Et. It listed in 2009. Its stock rose 0.74 per cent yesterday to close at Bt13.60.
Also yesterday, Siam Global House told the SET that on Saturday its board passed a unanimous resolution to approve the acceptance of SCG Distribution’s investment proposal. The new partner was seen as synergising its business capability and strengthening its capability to expand its branches more efficiently to meet increasing demand for construction materials and home decoration products both in Thailand and Asean.
The alliance will also enhance Siam Global House’s capital strength and long-term competitive strength, it said.
Witoon Suriyawanakul, CEO of Siam Global House, said SCG Distribution recognised the company’s capability and synergy with the latter’s long-term policy to invest in the retail business for construction materials and home-decoration products with the “big-box warehouse” format.
“The company will continue to maintain its business model without any change, namely, big-scale retail business offering fully integrated and various construction materials and home decoration products.
“The company strongly hopes that this investment by SCG Distribution will yield a long-term benefit to the company and its shareholders and will not cause any adverse impact to its customers, suppliers and employees,” he said.
Siam Global House was established in 1995. In 1997, it started operating under the name Global House as a building-materials and home-improvement store.
This year, its first-quarter net profit surged 28.63 per cent to Bt138.28 million on a 27.07-per-cent year-on-year gain in sales to Bt2.50 billion. Last year it earned Bt490.60 million on sales of Bt8.39 billion.