Thailand
Thailand: Berli Jucker keeps Big C delist plan
Berli Jucker Plc’s (BJC) plan to delist Big C Supercenter Plc from the Stock Exchange of Thailand is aimed at increasing retail competitiveness and speeding up expansion in both domestic and international markets.
Analysts say Big C can delist because its major shareholder BJC, with a 97.94% stake, has a strong financial position.
BJC is owned by billionaire Charoen Sirivadhanabhakdi.
As a listed company, Big C moves more slowly when it wants to invest or acquire another business because some projects require shareholder approval, say analysts.
BJC told the SET its board approved delisting by launching a tender offer to buy the remaining 2.06% stake or 17 million shares of Big C from retail shareholders. The tender offer price is 225 baht per share.
Complete ownership of Big C would cause BJC a free float problem without delisting as it has no policy to reduce its Big C shareholdings in the future, say analysts.
A source from BJC said the delisting will increase management flexibility because BJC can be more aggressive in expanding its retail business in neighbouring countries this year, including Cambodia, Laos, Myanmar and Vietnam. Aswin Techajareonvikul, chief executive of BJC, has plans to improve the retail management in its group by using Big C Supercenter as the role model. The improvement of retail management is expected to be completed within next month.
Mr Aswin has sent the Big C team to manage retail business under the ThaiBev group in Laos and Vietnam, where BJC operates M Point Mart convenience stores and MM Mega Market, respectively.
Thanks to better than expected results from the Big C team, he plans to change the name of 44 M Point Mart stores in Laos to Mini Big C. After BJC completes its retail improvement, it plans to open more Mini Big C branches in Laos.
Big C posted a net profit of 1.57 billion baht in the first quarter this year, up 4.3% year-on-year, on revenue totalling 27.98 billion baht, down 14.9%.
BIGC shares closed yesterday on the SET at 221 baht, down 12 baht, in trade worth 56.6 million. BJC shares closed at 43.25 baht, down 1.25 baht, in trade of 104 million.
Source: http://www.bangkokpost.com/business/news/1250266/berli-jucker-keeps-big-c-delist-plan