Thailand: King Power’s owner makes tender offer for all shares of Asia Aviation

After announcing an acquisition of 39 per cent stake in Thailand-listed Asia Aviation Pcl (AAV), Thai duty-free tycoon Vichai Srivaddhanaprabha informed the Stock Exchange of Thailand that he has made a tender offer to purchase the remaining stake at the same price of 4.20 baht apiece.

The tender offer is prepared by Siam Commercial Bank and the expected date for the official submission is on June 23.

Vichai said that he would use the family’s money to pay for the 39-per-cent stake that they acquired from the Bijileveld family, and borrow from Siam Commercial Bank for the rest.

“We consider this acquisition as the long-term investment and believe that it will strengthen and make both companies grow at a faster pace,” he said. “Apart from business synergy, we expect to reach break-even within 7-8 years from the dividend.”

Tassapon Bijileveld will hold only 5 per cent in AAV after he disposes the majority of his shares to the Srivaddhanaprabha family. However, he will continue working as CEO of AAV for at least five years.

“Regarding the stock market’s regulation, it is not easy for me to find a proper person to buy my shares. I (have) considered selling to the one who has enough potential to bring a brighter prospect and healthier growth to the company, in the future, and King Power Group has such things,” he said, adding that Thai AirAsia, operated by AAV, will continue to grow and invest as planned for 2016, accepting delivery of 51 new aircraft.

AAV projects its annual revenue will grow 20 per cent and buy five new planes every year, he said.

“We will also look to further expand our flight network within ASEAN, as well as routes to China and India, and with the support of King Power Group we may well see the company’s growth accelerated beyond what was originally anticipated,” Tassapon added.

Meanwhile, Aiyawatt Srivaddhanaprabha, the CEO of King Power Group, who will be appointed a director of both AAV and of Thai AirAsia, said that Chinese tourists have the largest share among King Power’s clients while Thai AirAsia carries the most passengers between China and Thailand, giving a good strategy to improve the service and expand another distribution channel for people to do shopping on the flight.

Currently, Thai AirAsia carries around 17 million passengers per annum, of which 20 per cent are Chinese.

Thai AirAsia and King Power will team up to develop their brands, products and services together, with the aim of providing customers with international-quality shopping and travel experiences at affordable prices, Aiyawatt added.

Business tycoon Tony Fernandes, the founder of AirAsia, is aware of the acquisition and will have the first formal meeting with the new shareholders next week.

Also read:

Thailand: King Power’s owners acquire 39% stake in Asia Aviation for $226m

Indonesia AirAsia to Merge with Indonesia AirAsia X

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.