King Power secures 39% stake in Asia Aviation in Bt7.9-billion deal
DUTY-FREE OPERATOR King Power Group has taken a 39-per-cent controlling stake in Asia Aviation (AAV), the operator of Thailand’s largest budget airline Thai AirAsia, from the carrier’s chief executive Tassapon Bijleveld and two of his family members in a
AAV reported to the Stock Exchange of Thailand yesterday that its board of directors had given is approval for Tassapon and his family to sell 1.8915 billion shares for Bt4.20 each to Vichai Srivaddhanaprabha, founder and CEO of King Power Duty Free, and four of his family members. AAV’s share price closed at Bt6 yesterday, up 10 satang or 1.69 per cent.
After the transaction was completed yesterday through big lot of purchases via the SET, Tassapon reduced his shareholding in AAV from 13 per cent to 5 per cent. He reduced his two family members’ shares from a combined 31 per cent stake to zero, while Vichai has 14 per cent and his four relatives take up the balance of 25.82 per cent.
Vichai will have to proceed with a mandatory tender offer to acquire all remaining securities of AAV from its other shareholders in accordance with stock-market regulations.
The AAV board also approved the appointment of three new directors with immediate effect, namely Sombat Dechapanichkul, Aiyawatt Srivaddhanaprabha and Apichet Srivaddhanaprabha. They replace Pattra Boosarawongse, Tanapat Ngamplang and Prechaya Rasametanin.
Previous news reports suggested the Srivaddhanaprabha family would pay Bt3 billion for a 23-per-cent stake in Asia Aviation, as Vichai hoped that King Power’s expansion into the aviation industry would help it gain more business from air travel and increase sales at its duty-free shops.
The negotiation process took a month before it was reported that an agreement had been struck.
The website DealStreetAsia recently quoted a source close to King Power Group as saying that one major driver behind this deal could be the fact that the group’s duty-free contract with Airports of Thailand was going to end in five years.
If King Power fails to renew the contract, it can still provide its services on board flights, the source said. “Customers can go shopping at its main store at [Soi] Rangnam and receive the goods on their flight. But if the contract is renewed, this remains a win-win strategy for both.”
Vichai is a billionaire who bought Leicester City Football Club in 2010 through his company King Power International Group. The duty-free retail chain is based in Thailand.
Leicester City became the toast of Thailand when it conquered the English Premier League last season. Forbes estimated his worth at US$3.1 billion (Bt109 billion) in 2015.
