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Siam Makro Climbs After Report of Share Sale Plan: Bangkok Mover

Siam Makro Pcl (MAKRO) rose to the highest in almost a month in Bangkok trading after the Prachachat newspaper reported its parent SHV Holdings NV plans to sell its entire stake in Thailand’s biggest cash-and-carry wholesaler.

The company jumped as much as 9.4 percent to 582 baht before trading at 560 baht as of 12:30 p.m. break, poised for its highest close since March 8. The stock was the best performer in the SET100 Index (SET100), which dropped 0.5 percent.

Suchada Ithijarukul, chief executive officer of Siam Makro, wasn’t available for comment when called at her office. Calls made on a public holiday to the SHV Holdings office in Utrecht, the Netherlands, weren’t answered.

SHV, a closely held Dutch energy company, hired advisers and aims to complete the sale of its holding in Bangkok-based Siam Makro by the end of this year, the Thai-language Prachachat said on its website, without saying where it obtained the information. Several retailers in Thailand are interested in buying Siam Makro’s stake, the report said.

“There is a chance that SHV is looking to sell its stake in Siam Makro,” Sureeporn Teewasuwet, an analyst at Finansia Syrus Securities Pcl (FSS), said by phone from Bangkok today. “Still, investors should be cautious because there is some uncertainty on this sale. Siam Makro’s current valuation is very expensive.”

Siam Makro trades at about 32 times estimated 12-month earnings, according to a data compiled by Bloomberg. Big C Supercenter Pcl (BIGC), the nation’s second-biggest operator of hypermarket stores, has a multiple of 24 and the SET Index trades at about 14 times estimated earnings.

SHV’s unit and an affiliate held about 64 percent of Siam Makro as of March 2012, according to data on Siam Makro’s website.

Siam Makro’s profit jumped 37 percent to 3.56 billion baht in 2012.

To contact the reporter on this story: Anuchit Nguyen in Bangkok at anguyen@bloomberg.net

To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net

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