Jardine C&C buys 25% in Thailand’s Siam City Cement for $615m

Visual from the company website

Singapore-listed Jardine Cycle & Carriage Monday said it will pay $615 million (S$842 million) for a 24.9 per cent stake in Thailand’s second largest cement maker Siam City Cement.

Siam City Cement, that is listed on the Thailand stock exchange, owns three plants with a total cement production capacity of 14.5 million tonnes per annum. In addition to cement, it also produces concrete and other building materials.

The deal structure will see JC&C acquire 57,270,000 ordinary shares in the capital of Siam City Cement representing approximately 24.9 per cent of the issued share capital. Post the deal, Siam City Cement will become an associated company of JC&C. The company further said the deal represents a discount of 2 per cent to the closing market price of a sale share of THB358 on 27th March 2015.

Alex Newbigging, group managing director of JC&C, said: “The investment will provide us with a meaningful exposure to the Thai economy in an established sector and in a company with a strong reputation.”

The deal will be funded by bank loans, and post this, Jardine C&C’s net borrowings are expected to rise to $854.4 million from $239 million currently, while its gearing will increase to 8 per cent from 2 per cent.

JC&C was jointly advised on the transaction by Bank of America Merrill Lynch and Phatra Securities PCL.

Jardine Cycle & Carriage is a member of the Jardine Matheson Group, and it has an interest of just over 50 per cent in Astra, a premier listed Indonesian conglomerate, as well as other motor interests in Southeast Asia. Together with its subsidiaries and associates, JC&C employs around 245,000 people across Indonesia, Malaysia, Singapore, Vietnam and Myanmar.

Also Read: 

Thailand dealbook: Indorama Ventures, Siam City Cement

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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.

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.