Berli shares soar 30% on bid
November 23, 2001
The stock price of consumer products company Berli Jucker Plc jumped almost 30 per cent to Bt39.75 yesterday on news of a takeover bid by liquor tycoon Charoen Sirivadhanabhakdi, who is expected to make a 100percent tender offer and to then seek Berli Juckerís delisting.
ďI think Khun Charoen might plan to delist Berli Jucker because what he really wants in the company is its Thai Glass Industries, the bottle supplier, for his liquor business,Ē said a source.
Through Hong Kongís Pacific Capital International Group and Thailandís TCC Group, Charoen has made an offer to acquire an 83.5percent stake worth Bt5.56 billion of Berli Jucker from First Pacific of Hong Kong. But according to exchange regulations, he will be required to make a 100percent tender for the company.
Pacific Capital International Group is a Hong Kongbased investment holding group with interests in the beverage and prop?erty sectors. TCC Group is a Thailandbased conglomerate with major investments in the beer, whisky, hotel and property industries.
At the offer of Bt42 a share, Berli Jucker is valued at around Bt6.66 billion.
Yesterday the Stock Exchange of Thailand allowed trading of Berli Juckerís shares to resume after the company released the details of First Pacificís sale of its entire 83.5percent stake, or 132,602,457 shares, for US$125 million (Bt5.5 billion).
On Wednesday, Berli Juckerís stocks rose from Bt28 to BtBt30.75 before it was suspended from trading after the company notified the exchange about the takeover bid.
Charoen has outbid all other parties for First Pacificís stake in Berli Jucker because he is interested in Thai Glass Industries, which supplies glass bottles and containers for other customers, including Charoenís beer opera?tion and Boon Rawd Brewery.
Thai Glass Industries is operating at 16,065 tonnes a day and is the only company that can produce green bottles.
Another wellinformed source said a duediligence process will be started soon and the deal will be completed by December 19.
He said nobody is certain at this point whether Berli Jucker might be delisted or not but he expects Charoen to continue to keep most of Berli Juckerís busi?ness.
Berli Jucker manufactures and distributes consumer and technical products.
According to Dow Jones Newswires, First Pacific shares, which finished Wednesday down 1 HK cent at 92 cents (Bt5.2), rose almost 10 per cent in early trading yesterday in the Hong Kong market on news of the deal.
ING Barings is First Pacificís adviser for the trans?action, which is expected to be completed by yearend.
Somluck Srimalee, Thanong Khanthong