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Prayut meets US-Asean business delegation
Prime Minister Prayut Chan-o-cha yesterday met with a US-Asean business delegation to exchange views on economics and investment in Thailand.
A government spokesman said the executives of 34 US firms including Ford, Microsoft, Google, Coca-Cola and Chevron were told that the government’s policy emphasised clean energy and the promotion of small and medium-sized enterprises.
Prayut also invited the US companies to invest in the five special economic zones.
F&N loses fight
Fraser & Neave has lost a legal spat with a joint-venture partner that has been trying to get F&N to adhere to a deal relating to Myanmar Brewery, which is viewed by many as the crown jewel of F&N’s beverage business.
Myanma Economic Holdings (MEHL) said yesterday that an arbitration panel had ruled in its favour. The panel has affirmed MEHL’s rights under a joint-venture deal to buy F&N’s 55-per-cent stake in Myanmar Brewery, maker of Myanmar Beer.
The ruling declared that MEHL, which holds the other 45 per cent, is entitled to buy F&N’s shares in Myanmar Brewery at fair value as at a date close to April 24 of last year. – The Straits Times/ANN
TUF acquisitions
Thai Union Frozen Products has completed the acquisitions of MerAlliance and King Oscar.
“The completion of these two transactions places us in an even stronger position at the heart of the world seafood industry,” Thiraphong Chansiri, president and chief executive of TUF, said yesterday.
In September, TUF stated that it had entered an agreement to acquire 100 per cent of MerAlliance’s and King Oscar’s assets. Both deals represent a strategic driver for TUF to double the group’s revenue by 2020.
MerAlliance is the leading European producer of chilled smoked salmon with annual sales of US$220 million (Bt7.2 billion) in the fiscal year ended March 31. King Oscar is the leading canned premium sardine in Norway, the US, Poland, Belgium and Australia. It generated $80 million in sales last year.
MerAlliance’s arrival allows TUF to expand from its existing frozen and shelf-stable product offerings into the chilled category.
CP, Itochu to launch shopping website in China
Major Japanese trading house Itochu plans to tie up with Thai conglomerate Charoen Pokphand Group to break into China’s online shopping market, sources told The Nikkei.
The Japanese trading company aims to sell Japanese products through the China (Shanghai) Pilot Free Trade Zone in a bid to tap demand among China’s growing ranks of middle-income consumers. US online shopping giant Amazon.com has also said it plans to enter China’s online shopping market via the same route.
Itochu and CP Group were on Sunday expected to sign a memorandum of understanding on the business partnership and cooperation with mobile-phone company China Mobile, Ping An Insurance, the Shanghai municipal government and other entities, The Nikkei said.
Chia Thai Group, a CP Group company that supervises operations in China, will play a central role in setting up a company to launch the shopping website as early as next year. Details have yet to be worked out.
Under the plans, the new company will import Japanese-brand products and clothes as well as daily goods, such as baby formula and paper diapers, that are popular among Chinese consumers, and market them on its shopping website.
To diversify its line of products, the new company will consider asking Japanese apparel and other firms to take part in the undertaking.
In China, Japanese and other foreign products are becoming increasingly popular among consumers, but they mainly import products individually through agents, and it often takes them about a month to receive products.
The new company will keep inventories in its bonded warehouse at the pilot free-trade zone so that customers can receive products within a few days. In many cases, prices will be around 30 per cent less than those of products imported individually, according to the sources.
Observers note that fake brand items are often sold on Chinese shopping websites. The new company, in which Itochu will take part, will guarantee that all of the goods for sale on its website will be authentic, so as to highlight the credibility of its products.
IVL completes bond issue
Indorama Ventures, one of the world’s largest vertically integrated polyester chain producers, has successfully completed its first issuance of perpetual bonds worth Bt15 billion.
“We are very pleased with the outcome of this transaction, which is a testimony of the market’s wide recognition of the company’s successful execution of its in-depth and ongoing transformation,” CEO Aloke Lohia said in company release issued yesterday.
“This issue further strengthens IVL’s capital structure, improves liquidity and flexibility towards deploying its strategy.”
Based on their structure, the perpetual debentures were rated “A-” by Tris Rating, a local credit rating agency, while IVL has a company rating of “A+”.
The issue, although targeted at Bt10 billion, was upsized to Bt15 billion – the largest ever issue of corporate perpetual debentures in Thailand – to accommodate excess demand from investors with an over-subscription of around 1.50 times.
Although the perpetual bond is a new financial product in the Thai debt market, the transaction attracted robust participation from investors, which IVL said reflected investor confidence in both the firm’s business and its financial stability.
Bangkok Bank, Siam Commercial Bank and Krungthai Bank were the lead arrangers and Asia Plus was a co-manager of the transaction.
