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Thailand Stock Exchange to Probe Siam Makro Trades

Thailand’s stock exchange will investigate trading that preceded the announcement of the nation’s largest takeover bid, the purchase of discount wholesaler Siam Makro Pcl (MAKRO) by 7-Eleven chain operator CP All Pcl. (CPALL)

Siam Makro’s shares rose 30 percent in the six trading sessions before CP All’s $6.6 billion bid was announced. The stock jumped 15 percent on April 17, while the volume of shares traded rose to 1.6 million, almost four times the six-month average. CP All, backed by Thai Billionaire Dhanin Chearavanont, offered to buy Siam Makro for 787 baht a share on April 23.

“It’s our job to investigate any irregularities,” Charamporn Jotikasthira, president of the Stock Exchange of Thailand, said in an interview today. “We have seen it and begun the process to investigate that.”

Korsak Chairasmisak, chief executive officer of CP All, and Suchada Ithijarukul, CEO of Siam Makro, weren’t immediately available for comment after calls to their offices.

The deal would be the largest on record for a Thai company and the biggest takeover announced in Asia this year, data compiled by Bloomberg show. CP All’s offer is 41 percent above Siam Makro’s average price in the prior 20 days, a record premium for a retail deal in emerging Asia, according to data compiled by Bloomberg.

Photographer: Brent Lewin/Bloomberg

Signage for Siam Makro Pcl is displayed atop one of the company's Makro stores in Bangkok. Close

Signage for Siam Makro Pcl is displayed atop one of the company's Makro stores in Bangkok.

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Photographer: Brent Lewin/Bloomberg

Signage for Siam Makro Pcl is displayed atop one of the company's Makro stores in Bangkok.

CP All shares climbed 4.5 percent to 40.75 baht at the noon trading break in Bangkok, poised to snap a two-day slide. Siam Makro declined 0.3 percent to 752 baht, heading for the first loss since April 9.

-- With assistance from Anuchit Nguyen in Bangkok. Editors: Matthew Oakley, Allen Wan

To contact the reporter on this story: Suttinee Yuvejwattana in Bangkok at suttinee1@bloomberg.net

To contact the editor responsible for this story: Philip Lagerkranser at lagerkranser@bloomberg.net

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