Rajthanee Group, owned by property tycoon Boon Vanasin, is the favourite to buy the shares of Christiani & Nielsen (Thai) from Siam Commercial Bank (SCB), which aims to reduce its holding in the construction company.

A source said the price offered will be the most important factor the bank will consider when choosing a buyer, and it remained to be seen whether Rajthanee would match the offers from other investors.

According to a financial adviser, who did not want to be named, the bank is currently a major shareholder in Christiani & Nielsen (Thai) (CNT) with about 42 per cent of the stock.

SCB is required to reduce its stake in keeping with regulations of the Bank of Thailand, which has set limits for shareholdings by banks in companies that have gained the most from debt restructuring.

Boon is a major shareholder of Rajthanee Realty, the developer of several projects.

He is also a director of Piyavate Hospital and owner of other hospitals in Bangkok, including Thonburi I and Thonburi II.

The source said both local and foreign investors have expressed interest in CNT. He said Boon would use Rajthanee Realty, one of five companies under the Rajthanee Group, to buy CNT. He said CNT and Rajthanee Realty are in the same line of business and the investment could be good synergy. 

In addition, both companies once formed a business alliance for the construction of a subway project in China. Thus, Rajthanee Realty is the most likely investor to be selected by the bank. However, the most important factor is the price each investor offers the bank.

"Rajthanee Group has the highest potential, but it's up to them whether they can compete on pricing as other investors would also like to take over CNT," he said. He added that other major shareholders in CNT have not yet expressed their intention to sell CNT shares.

CNT announced its net profit in 2006 at Bt52 million, down from a net profit of Bt90.2 million in 2005.

Danuch Yontararak, managing director of CNT, informed the Stock Exchange of Thailand last week that the company's lower net profit last year was due to the increase in oil prices and interest rates. The company's construction costs also rose.

In addition, the company set aside reserves for losses in some investments due to extension of construction periods caused by uncontrollable external factors.

Siriporn Chanjindamanee

The Nation