THURSDAY, March 28, 2024
nationthailand

Deals of the year

Deals of the year

Prasert’s moves to expand his portfolio

Prasert Prasarttong-Osoth, founder of Bangkok Airways and major shareholder of Bangkok Hospital Group, made big moves in 2016 with the acquisition of the 37-year-old Swissotel Nai Lert Park Hotel in Bangkok at a cost of Bt12.8 billion and snapping up more private hospitals for his medical and wellness portfolio.
Prasert is now on the fast track to becoming one of the biggest regional medical players, with the aim of operating more than 50 multiband hospitals throughout the region, including a new wellness centre at the former Nai Lert Park Hotel. 
Bangkok Hospital Group’s annual medical and wellness revenue is projected to reach Bt100 billion within the next three years, compared to Bt70 billion in 2015. In 2016, Money Banking Magazine reported that Prasert was Thailand’s wealthiest individual stock investor, with a holding of listed shares worth Bt67.24 billion. 
 
King Power’s diversification into travel
Thailand’s duty-free operator, King Power Group, set a new milestone for the company by diversifying into travel business with high hopes of cashing in on the fast-growing China market, following the acquisition of a 39-per-cent stake in Asia Aviation – the operator of Thai AirAsia – for Bt7.9 billion in June. 
Vichai Srivaddhanaprabha, founder and chief executive of the group, said Thai AirAsia would continue to expand its network, while King Power would promote more duty-free products on-board, as well as online. 
China is expected to continue to be Thailand’s largest client market for duty-free products, with nearly 10 million Chinese visitors accounting for the lion’s share of foreign arrivals into the Kingdom in 2016. The group expects to generate overall revenue of Bt85 billion this year, up sharply from last year’s level of Bt65 billion.
 
Thai Union’s $575-million restaurant deal
Many agro-industry companies have announced “from farm to table” strategies, but not all of them can achieve such a goal. 
Thai Union Group, the world’s largest canned-tuna company, in October managed to do so through its US$575-million (Bt20.7 billion) acquisition of Red Lobster Seafood, a US-based seafood-restaurant chain with franchised branches in the Middle East, Asia and South America. Thai Union paid $230 million for a 25-per-cent stake in Red Lobster and $345 million for the preferred shares, which are convertible to common stock within 10 years.
It was the company’s fourth overseas purchase of 2016, putting its total acquisition value at $648 million for the year.
The latest deal reaffirms Thai Union boss Theeraphong Chantiri’s appetite for strong brands and fulfils his more recently-announced goal of entering the food-service sector. 
It also came after the group was forced to scrap a $1.5-billion deal to buy its US rival, Bumble Bee Seafoods, in December 2015.
 
VGI Global Media’s growing empire
To be a winner in the intensely competitive out-of-home media sector, VGI Global Media appears to prefer the merger-and-acquisition route, having sealed four domestic and overseas deals during the course of the year. 
With a combined value investment of Bt2.4 billion, the acquisitions were aimed at driving growth and gaining a larger market share. 
The company’s 2016 deals involved the acquisition of a 37.42-per-cent stake in Master Ad for Bt412.5 million; purchase of 90 per cent in Bangkok Smartcard System Co and BSS Holdings, worth Bt1.95 billion combined; increasing its stake in Aero Media from 20 to 30 per cent in a deal worth Bt10.7 million; and investing Bt28.22 million to snap up a 19-per-cent stake in three Malaysian advertising agencies – Puncak Berlian, Utusan Airtime and Ikatan Asli.
 
Central Group’s expanded Asian presence
Central Group, Thailand’s largest retail and property conglomerate, in April made a big expansion move by acquiring Big C Vietnam from France’s Casino Group for 920 million euros (Bt34.5 billion). The acquisition was made in partnership with Nguyen Kim Group, one of the leading electronics retailers in Vietnam. 
Central Group acquired 49 per cent of Nguyen Kim in 2015. Central said the latest acquisition represented the strength of its will to keep expanding its business in Asia.
Big C Vietnam has 43 stores nationwide, comprising 33 hypermarkets and 10 convenience stores, and 30 shopping malls.
Its revenue in 2015 was about 586 million euros. Central’s local subsidiary, Central Group Vietnam, was founded in 2011 with its business partner, Nguyen Kim.
 
Berli Jucker’s acquisition of Big C
Berli Jucker acquired 98 per cent of Big C Supercenter for US$5.8 billion (Bt208.8 billion) early in the year. The company said the Big C acquisition represented the company’s natural next stepping stone to becoming a distribution and retailing leader in the region. 
The acquisition will also provide Berli Jucker with big growth opportunities driven by full-value chain integration from raw materials to end consumers, it added. Big C itself has strong brand awareness as the third-largest grocery retail group in Southeast Asia. Big C Supercentre currently operates 114 Big C Hypermarkets, 15 Big C Extras, 59 Big C Markets and 487 Mini Big Cs. 
It plans to open nine further Big C Hypermarkets, four Big C Market stores and about 200 Mini Big C outlets in 2017.
 

TAGS
nationthailand