Thai Billionaire Transfers Shares: Bangkok Post Update
- 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...
- 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...
- this transfer marks the latest step in Sirivadhanabhakdi's gradual withdrawal from the daily operations of his extensive beer-to-property conglomerate.
Thai billionaire Charoen Sirivadhanabhakdi has transferred control of key assets to his children, a move that promptly impacted the markets.Shares of Berli Jucker (BJC) and Asset World Corp (AWC) dipped following the declaration, sparking investor concern. This strategic succession plan, part of Sirivadhanabhakdi’s gradual withdrawal, sees the transfer of shares in Sutthasup 9 Company, affecting the Thailand stock market and asset management. The companies assure operations will continue under existing management, but the shift has already been felt. News Directory 3 observes this evolving chapter in Thai business. With the second-richest man in Thailand passing down significant holdings, what does this mean for the long-term strategic direction of these major companies and succession planning? Discover what’s next as the market reacts.
Charoen Sirivadhanabhakdi transfers Control of Key assets to Children
Updated May 27, 2024
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.