TCC Agro to snap up Siam Food Products
TCC Agro-Industrial, owned by liquor magnate Charoen Sirivadhanabhakdi, has signed a memorandum of understanding (MoU) with Thai Food Pattanakij to acquire an 81.12-per-cent stake in Siam Food Products (SFP) in a buy-out deal worth Bt1.62 billion.
TCC Agro-Industrial will buy 17.04 million shares of Siam Food Products at Bt95 apiece, above the market price of Bt93. The deal should be finalised this month, Siam Food Products said in a filing with the Stock Exchange of Thailand yesterday. "Such a sale and purchase of shares would be subject to due diligence performed by the Purchaser. White and Case (Thailand) and KPMG Phoomchai Business Advisory were appointed as the Purchaser's advisers for the due diligence," the company said in the statement. TCC Agro-Industrial, a wholly owned subsidiary of TCC Holding, which is 64.41-per-cent owned by Charoen and his group, has registered capital of Bt1 billion and paid-up capital of Bt671 million. The main business of TCC Agro-Industrial is investment in agriculture and agricultural industries. If the deal goes through, TCC Agro-Industrial will be subject to a tender offer for the remaining shares. Siam Food Products' net profit fell 85.85 per cent to Bt13.23 million last year, from Bt93.48 million in 2005. The company's disappointing earnings last year can be attributed to a 55.51-per-cent drop in other revenues, a decrease in share of profit from investments in associated companies and joint ventures and a 34.7-per-cent rise in sales and administrative expenses. Last year, another Charoen-owned investment firm acquired a significant stake in Oishi from Tan Passakornatee and his partners.
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