<article>The board members of <a href="http://becl.co.th/" target="_blank">Bangkok Expressway Plc (BECL)</a> and <a href="http://www.bangkokmetro.co.th/" target="_blank">Bangkok Metro Plc (BMCL)</a> have agreed to merge the two companies to strengthen their business position and boost competitiveness in the ASEAN region.</article>

The board members of <a href="http://becl.co.th/" target="_blank">Bangkok Expressway Plc (BECL)</a> and <a href="http://www.bangkokmetro.co.th/" target="_blank">Bangkok Metro Plc (BMCL)</a> have agreed to merge the two companies to strengthen their business position and boost competitiveness in the ASEAN region.
BECL is an operator of the expressway and MBCL operates the MRT mass transit network in Bangkok.
BECL&#8217;s managing director Payao Marittanaporn said the merger will support their business expansion in domestic market, especially in the light of the inauguration of Asean Economic Community (AEC). The new firm, which is yet to be given name, will help increase competitiveness and strengthen the financial position for both the firms.
The board meetings agreed to the share swap ratios for shareholders in the two firms in the new entity, at 8.65537841 shares for each BECL share and 0.42050530 shares for every BMCL share.
“BMCL will reduce the par price from 1 baht to 0.37 baht apiece before merging with BECL, in a bid to reduce the accumulated loss from 12 billion baht to 100 million baht ($375 million to $3.125 billion). Once the merging is completed, the loss will be eliminated by BECL’s profit and the new company will pay the dividend at 40 per cent (of the net profit) to shareholders this year,” said BMCL managing director Sombat Kitjalaksana.
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The new company is expected to generate the revenue of 11.657 billion baht ($364.28 million), up 3.42 per cent from a combined revenue of BECL and BMCL last year. Of that, 8.683 billion baht ($271.34 million) will come from BECL and 2.974 billion baht ($92.94 million) from BMCL.
The new company is scheduled to be listed on the Stock Exchange of Thailand by the third quarter, the statement said.
Thai government has announced that it will build up to 500 kilometres of mass transit, comprising BTS, MRT and Airport Link within 15 years. So far, it has completed 60 kilometres, and 70 kilometres of purple line, green line and extension of blue line are under construction.
Meanwhile, 70 kilometres of the orange, pink and yellow lines of mass transit will be proposed to the Cabinet within this quarter and expected to hold the bidding this year. Therefore, this merging will bolster the new company’s position and increase the opportunity to win the bidding.

Bangkok Expressway Plc (BECL) and Bangkok Metro Plc (BMCL) are merged to strengthen their business position and boost competitiveness in the ASEAN region.

Merger of Thailand's BECL & BMCL approved

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