Siam Makro buys four food companies
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Siam Makro, which runs the Makro cash-and-carry store chain, has clinched a 3-billion-baht (US$85.75 million) deal to acquire four food companies.
Through its wholly owned subsidiary Siam Food Services, Siam Makro has entered into an agreement to acquire an 80 per cent stake in each of Indoguna (Singapore), a listed firm on the Singapore Exchange, Indoguna Dubai, Lordly and Just Meat. Indoguna is listed on the Singapore exchange, while Lordly and Just Meat are Hong Kong listed.
The funds will come from Siam Makro’s cash flow and bank loans.
Siam Makro’s major shareholder, Charoen Pokphand Group (CP), has its strength in the food and agricultural businesses. CP acquired a 64 per cent stake in the cash-and-carry chain from the Dutch trading company SHV Holdings for $6.6 billion in 2013.
Siam Makro has partnered with with local companies to take its Makro cash-and-carry chain to Cambodia. The JV is 70 per cent owned by Makro ROH, a wholly owned subsidiary of Siam Makro, and the balance by Cambodian investors, with $2 million in initial registered capital.
Siam Makro plans to open 10 stores in Thailand this year, bringing its total outlets to 108 nationwide. During the first half, Siam Makro posted a net profit of 2.38 billion baht on revenue totalling 85.7 billion.
Questions & Answers
Q.Which specific companies are Siam Makro acquiring through this deal?
Which specific companies are Siam Makro acquiring through this deal?
Siam Makro, via its subsidiary Siam Food Services, is acquiring an 80 per cent stake in Indoguna (Singapore), Indoguna Dubai, Lordly, and Just Meat.
Q.How will Siam Makro fund the acquisition of these four food companies?
How will Siam Makro fund the acquisition of these four food companies?
The funds for the 3-billion-baht deal will be sourced from Siam Makro’s existing cash flow and supplemented by bank loans.
Q.Where are the newly acquired companies, Indoguna, Lordly, and Just Meat, listed?
Where are the newly acquired companies, Indoguna, Lordly, and Just Meat, listed?
Indoguna (Singapore) is listed on the Singapore Exchange. Lordly and Just Meat are both listed on the Hong Kong stock exchange.
Q.What is the nature of Siam Makro's expansion into Cambodia?
What is the nature of Siam Makro's expansion into Cambodia?
Siam Makro has formed a joint venture with local investors to introduce its cash-and-carry chain to Cambodia, with its subsidiary Makro ROH owning 70%.