Charoen Sirivadhanabhakdi‌ transfers Control of Key assets ⁣to Children

⁤ ⁢ Updated May 27, ⁣2024
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Shares of Berli Jucker (BJC) and Asset World Corp (AWC) experienced a dip‌ Tuesday after thai billionaire Charoen Sirivadhanabhakdi, 81, transferred control of the publicly listed companies to his five children.⁣ The move raised investor concerns about ⁤potential shifts ‍in ⁣major shareholding.

Sirivadhanabhakdi, Thailand’s ‍second-richest individual, divested his shares in Sutthasup 9 Company to his children in equal proportions, according ⁣to filings made⁤ by AWC and BJC to the Stock Exchange of⁢ Thailand (SET) on Monday. Sutthasup 9 holds indirect control over both companies. The filings did not specify the exact amount of shares Charoen held.

this ⁣transfer marks the latest step in Sirivadhanabhakdi’s gradual withdrawal from the daily operations​ of his extensive beer-to-property conglomerate. ​Both AWC and BJC released statements assuring that the major shareholder restructuring would not impact current management, business⁤ operations, or strategic direction.

AWC emphasized its continued operation under the existing management team, ⁣adhering to its established ⁤long-term business plan. Tuesday morning saw BJC shares fall⁤ by as much as 3.3%,​ eventually closing down 2.9% at 20.40 baht.Similarly, AWC shares dropped ‍3% before ending the day⁤ down 1.5% at 1.97 baht. The SET Index also experienced a slide of 1.3%.

According to the Bloomberg Billionaires Index,⁣ Charoen Sirivadhanabhakdi’s net worth is approximately $11.6⁣ billion. His ‍business empire includes Thai Beverage, ⁤Fraser and Neave, and Frasers Property. Yuwanee Prommaporn, an​ analyst ‍at‍ Krungsri ‌Securities, noted that share price drops are common during major shareholding⁤ changes due​ to ⁢transition uncertainties. However, she⁣ believes the restructuring will not impact business operations, as the management ‍team remains unchanged.

Prommaporn added that ⁤Berli Jucker has outperformed its competitors, ​with ⁤same-store sales growth exceeding 2%‍ in the first⁣ quarter. Krungsri Securities maintains a low- to mid-single ⁤digit same-store sales growth forecast for BJC in ⁢2025,driven by improvements​ in the fresh food segment and recovering packaging ⁣sales.

Wallapa Traisorat,Sirivadhanabhakdi’s daughter and AWC’s‍ chief executive,mentioned last year that the restructuring is part of a broader ⁣plan to pass down investments to his children. In February, Sirivadhanabhakdi stepped down as ⁣chairman of Frasers ​Property, assuming⁣ the title of chairman emeritus. He ⁢also​ resigned as⁢ chairman of Fraser and Neave ​a month⁤ prior.

Sirivadhanabhakdi retains control of TCC Group, a conglomerate ⁤with significant holdings across beverage, real estate, consumer goods, and retail sectors. His children⁢ also hold⁢ key positions, including thapana Sirivadhanabhakdi (CEO of Thai Beverage), Thapanee Techajareonvikul (CEO of BJC), and Panote⁣ Sirivadhanabhakdi (CEO of Frasers⁢ Property).​ His wife, Wanna, passed away in 2023.

Earlier this ‍month, Frasers ‌Property announced ⁤its intention to take a real estate investment trust (REIT) private for $1.1 billion, ​marking its second attempt to⁤ buy out the unit.

What’s next

The market will ⁢be watching ‌closely to see how the new generation of leadership impacts the strategic direction and operational performance of Berli Jucker and Asset​ World Corp in the coming years. The transfer of assets represents a significant ‍shift in Thailand’s business landscape, with potential long-term implications for‌ the Thailand‍ stock ‍market, asset management, and succession planning among‌ family-owned conglomerates.