Thai Summit denies sale amid rumours, confirms financial stability

Thai Summit Autoparts Industry Co, Ltd issued a statement on Thursday (February 5) clarifying reports of an alleged sale of the company. Amid rumours that the shareholders of the Thai Summit Group were planning to sell the business, the company firmly stated that the news is entirely false.

The company explained that it regularly hires international consultants in various areas, including finance and other sectors, as part of its normal business operations.

The company further reassured its partners, financial institutions, and stakeholders that its operations remain stable, with the business continuing as usual. Thai Summit is proud to be a leading Thai company with world-class technology, standing strong in the global automotive industry amidst the ongoing transformations in the sector.

Additionally, the company affirmed that family members of the group's political shareholders have not been involved in the company's management decisions. Thai Summit also stressed that it does not wish to have its business used for political purposes to damage the credibility of any individual or political party.

According to a Bloomberg report, citing sources close to the matter, Thai Summit Group, Thailand's largest automotive parts manufacturer, is considering a potential "sale of the business" due to growing pressure from the global automotive industry's transition to electric vehicles, political uncertainties, and succession challenges.

An anonymous source said several global investment banks have recently revisited proposals with the Juangroongruangkit family, which owns the business, for a potential sale valued at between $1.5 billion and $2 billion (about 47 billion to 63 billion baht).

However, Thai Summit Group has yet to appoint financial advisers, and initial discussions may not lead to any immediate action. The source added that traditional automotive parts manufacturers are facing increasing pressure due to technological changes, and the issue of "business succession" has become a common challenge for family-run businesses across Asia.

Investment banks have also suggested potential buyers, including CVC Capital Partners, Warburg Pincus, and Blackstone Inc, although no official contacts have been made.

Thai Summit Group did not respond to multiple emails from Bloomberg seeking comment on the matter.

Members of the founding family, which has built the company into a cornerstone of Thailand's automotive industry over the decades, have struggled to find a successor for the leadership role since the passing of founder Pattana Juangroongruangkit in 2002.

The source noted that banks see this deal as an attractive opportunity, given the rarity of such large companies entering Southeast Asia's market.