Thailand’s largest convenience store chain CP All has made a bid for cash-and-carry retailer Siam Makro.
CP All, the Thai operator of 7-Eleven stores, will pay 787 baht (US$27.3) per share for a 64.3% stake from Dutch group SHV Holdings. The deal would value the chain at US$6.6bn, around 15% above its market value of $5.7bn, and be Thailand’s largest takeover.
CP All said it has signed a sale and purchase agreement with the major shareholder for the stake, but the acquisition will now need to go to the shareholders’ meeting for approval. A decision is expected by 12 June.
The offer will be funded by a $6bn loan. The company said the deal will give it greater bargaining power in sourcing supplies as well as allowing it to expand in south-east Asia.
“Makro will be a new distribution channel to export Thai small and medium enterprises and agricultural products as well as fresh and frozen goods such as meat products to ASEAN countries creating an opportunistic distribution channel for SME operators and Thai farmers,” the company said.
Siam Makro operates arouns 58 Makro-branded outlets in Thailand in addition to five Siam Frozen outlets. It reportedly generated revenues of THB112bn last year.