SCG expands into retail business
Siam Cement Group has expanded into the building material retail business, through the Bt10 billion offer for Siam Global House Plc.
Its wholly-owned subsidiary SCG Distribution Co Ltd has submitted the offer for a 30.01-33.4 per cent stake in Global House. In the statement to the Stock Exchange of Thailand, SCG said that under the deal, it will buy 224 million shares in Siam Global House at Bt14 apiece in a private placement. Partial offer will cover no more than 457 million shares and no fewer than 391 million shares, also at Bt14 apiece. The deal will also include 47.6-55.6 million warrants, at Bt9.30 apiece.
"This investment represents SCC's entry into the retail business for building materials products with the warehouse store format, which is expected to see high rates of growth due
to the changing patterns of consumer behaviors. SCC aims to be Global House's sustainable strategic partner, while enhancing its capabilities and opportunities to expand across the ASEAN region, including Thailand," said SCG President and CEO Kan Trakulhoon.
The share subscription agreement was signed on August 26.
Siam Global House is a leader in Thailand's retail business, with its "warehouse store" format. It
offers a wide range of products, including building materials and decorative products, appliances and equipments for construction, maintenance, as well as housing, building and landscape decorations.
SCG Distribution will become the second largest shareholder of Siam Global House after the Suriyawanakul family.
Listed in 2009, Siam Global House was incorporated in Roi Et. Its share price rose 2.2 per cent today to Bt13.80.
"SCG Distribution expressed its intention to invest in the company as it recognises the company's capability and synergy with SCG Distribution's long term investment policy to invest in construction materials and home decoration products retail business in the form of Big Box Warehouse. The company will continue to maintain its business model without any change, namely, big-scale retail business offering fully integrated and various construction materials and home decoration products. The company strongly hopes that this investment by SCG Distribution will benefit, and yield a long term benefit to the company and its shareholders and will not cause any adverse impact to its customers,
suppliers and employees," said Witoon Suriyawanakul, CEO of Siam Global House.