HONG KONG-CP All, the Thai operator of 7-11 convenience stores, owned by the billionaire Dhanin Chearavanont, said Tuesday it would pay more than $6 billion to acquire the discount retailer Siam Makro.
Under a two-stage deal, CP All said it would offer 343.24 billion baht, or $6.6 billion, for all the outstanding shares of Makro, which operates 57 membership- club based retail outlets around Thailand, as well as a chain of five small frozen food shops, Siam Frozen.
It is the second blockbuster acquisition in recent months for a company controlled by Mr. Chearavanont, whose Charoen Pokphand Group in February formally completed the $9.4 billion purchase of a 15.6 percent stake in China’s Ping An Insurance Group from HSBC Holdings.
The deal also follows another major takeover by another Thai billionaire, Charoen Sirivadhanabhakdi, a beverage magnate whose companies in January completed an $11.2 billion buyout of the Singaporean conglomerate Fraser & Neave.
In a Tuesday filing to the Stock Exchange of Thailand, CP All said it has reached an agreement to pay 787 baht, or $27.50, per share for the 64.4 percent of Makro owned by the SHV Holdings, a private, family-owned Dutch firm with businesses ranging from oil and natural gas production to private equity investing.
After the deal with SHV, CP All plans to launch a general offer to public shareholders of the remaining 35.6 percent stake at the same price.
The offer of 787 baht per share represents a 15.4 percent premium to Makro’s closing share price of 682 baht on Friday, when the stock was suspended from trading in Bangkok.
