The Ratanarak Group has bolstered its dominance in Siam City Cement by acquiring Jardine Cycle & Carriage’s 25.54% stake in the company. The transaction, valued at THB 12.18 billion (USD 353.97 million), raises the Ratanarak Group’s shareholding to a commanding 71.88%. This acquisition further strengthens the Group’s control over Siam City Cement, a leading player in the country’s industrial sector.
The deal, announced earlier this week, triggered a significant 9.4% surge in Siam City Cement’s stock price, propelling it to THB 156 per share—the highest level since February 2023. The Ratanarak Group’s subsidiary, Sunrise Equity, purchased 76.1 million shares at THB 160 per share, reflecting an 11.5% premium over the stock’s closing price before the deal. This premium highlights the strategic value of the transaction, as it pushes Siam City Cement’s overall valuation to THB 47.68 billion. Analysts at Jefferies, while noting the market’s positive reaction, described the acquisition price as modest in comparison to historical transaction valuations in the cement industry. However, they predict strong earnings growth for Siam City Cement, citing stabilised coal prices and the company’s ongoing cost-cutting initiatives as key factors for its financial trajectory.
Jardine Cycle & Carriage, which had held a stake in Siam City since 2015, experienced a 1.7% rise in its own shares following the sale, reaching their highest price since June this year. The sale aligns with Jardine’s broader strategy of reallocating capital to support long-term growth and sustainability, with proceeds directed towards its internal funding needs. This acquisition marks a pivotal moment for the Ratanarak Group, which has a long-standing relationship with Siam City Cement. Founded by the late Chuan Ratanarak, the Group maintains significant holdings in major Thai companies such as Allianz Ayudhya Capital and Eastern Star Real Estate.
The move further solidifies Ratanarak’s foothold in Thailand’s industrial sector, reflecting the Group’s ongoing commitment to consolidating its influence across key industries in the Thai economy. As the Thai construction and infrastructure sectors continue to grow, the Ratanarak Group’s increased control over Siam City Cement could yield long-term benefits. The acquisition underscores the Group’s commitment to maintaining its leadership role in the country’s industrial development, reaffirming its legacy of strategic foresight and business acumen.
