Thai beverage buys into Oishi

"It could be waived from the [mandatory] tender offer if this is a simple business reorganisation as said, or if Oishi's business structure is not changed," an investment banking source said yesterday.

"Though this is not yet a backdoor listing, it is the first step of ThaiBev in making its presence felt in the Thai bourse," he said.

ThaiBev said it would buy the stake in Oishi owned by Yodkij Thurakit - a business arm of ThaiBev founder Charoen Sirivadhabhakdi.

ThaiBev president and CEO Thapana Sirivadhanabhakdi said the deal follows the brewer and distiller's policy to expand into non-alcoholic beverages, following its takeover of Wranger energy drink earlier this year.

Oishi president Tan Passakornnatee insisted that ThaiBev was not attempting a backdoor listing, whereby a nonlisted company swallows up a listed one.

ThaiBev's application in 2005 to list on the Stock Exchange of Thailand met strong resistance from religious groups. It turned to the Singapore Exchange instead but Charoen has reportedly bought back shares there.

ThaiBev's first-quarter revenue rose by Bt799 million to Bt26.74 billion on year.

Oishi's stock has advanced by 20.69 per cent to Bt35 from Bt29 last month.