Thailand’s Ratanarak Group has secured a controlling interest in Siam City Cement through the acquisition of Jardine Cycle & Carriage’s 25.54% stake. The transaction, valued at 12.18 billion baht (approximately $353.97 million), elevates Ratanarak Group’s shareholding in Siam City to a commanding 71.88%.
The announcement, made by Siam City Cement on Monday, led to a substantial rise in its share price, which surged by 9.4% to 156 baht—the highest level since February 2023. Under the terms of the deal, Ratanarak’s subsidiary, Sunrise Equity, purchased 76.1 million shares at 160 baht per share, placing Siam City Cement’s total valuation at 47.68 billion baht. This purchase price represents an 11.5% premium over the cement manufacturer’s closing price on the previous Friday.
Despite the positive market reaction, analysts at Jefferies have critiqued the acquisition price as relatively modest. They anticipate earnings growth for Siam City Cement, given stable coal prices and potential savings from ongoing cost-cutting measures.
The deal also prompted a modest increase in Jardine Cycle & Carriage’s shares, which rose by 1.7% to S$27, marking their highest level since late June. Jardine Cycle & Carriage, which had been the second-largest shareholder in Siam City Cement, originally acquired its stake in 2015. The sale returns control of the cement giant to Ratanarak Group, which played a foundational role in its establishment.
Jardine Cycle & Carriage described the sale as part of its strategic realignment to meet long-term growth and sustainability goals. The proceeds from the sale will be channelled towards Jardine’s internal funding needs.
The Ratanarak Group, founded by the late Chuan Ratanarak, holds significant stakes in several major Thai companies, including Allianz Ayudhya Capital and Eastern Star Real Estate. The group’s latest acquisition consolidates its influence in Thailand’s industrial sector, aligning with its historical involvement in Siam City Cement’s development.
This acquisition underscores Ratanarak Group’s ongoing commitment to expanding its foothold in key sectors of the Thai economy, reaffirming its legacy and strategic vision within the cement industry.
