Thailand’s new CEO PM will find it hard to please 23 Aug 2023 Populists and the military voted in Srettha Thavisin, a tycoon. Markets are cheering the end of an impasse. But the $500 bln economy has scant room for handouts and crony capitalism that grew under the prior mogul-turned-leader Thaksin who is back from exile. Relief may be brief.
Macau wannabes risk being short of gamblers 29 Jun 2023 Japan and the UAE will soon have legal casinos; Thailand may follow. In theory Wynn, MGM and peers will have around $12 bln of new annual revenue to play for, more than Macau has raked in this year. But newcomers can’t rely on Chinese punters and their home markets are untested.
Thai Inc shakeup could follow shock election win 22 May 2023 The winning party remains upbeat it can form a government. Institutional reform is top of Move Forward’s agenda, but its wish list includes breaking up monopolies and cutting state concessions. The $500 bln economy needs a competitive upgrade. It will come at tycoons’ expense.
Thailand’s election could be a lose-lose scenario 12 May 2023 Sunday’s vote might deliver victory for pro-democracy parties or return the junta-backed government to power. No matter who wins, old hostilities will escalate. While both sides plan populist handouts, neither has an inspiring economic agenda.
Weed’s next frontier is in Asia 23 Dec 2022 The cannabis market is estimated to be a $100 billion industry by 2026, but largely confined to the U.S., Canada and parts of Europe. While legalising ganja has been a slow burn in Asia, official attitudes are shifting. Demand from regional consumers will slowly light up.
Bankers hit the bottle for Asia deal inspiration 5 Jul 2022 Thai Beverage is spinning off its beers business in Singapore while the Manila-based owner of Whyte & Mackay whisky plans a secondary listing. Rising home consumption can be a comforting tipple amid global uncertainty. Well-priced boozy deals could crack open the wider market.
Selfridges’ buyer has hedge against retail risks 24 Dec 2021 Thailand’s Central Group and Austria’s Signa are paying a pricey $5 bln to acquire the department store group. With the future of retail uncertain post-pandemic, they’re taking a risk. Yet the scale of that punt is reduced by the fact this is also a prime real estate deal.
Telenor dials up another promising Asian deal 23 Nov 2021 Following its jumbo Malaysian merger, the Norwegian telecom operator plans to combine its Thai unit with a rival owned by conglomerate CP. There’s a 25% premium on offer to sell, but $2 bln of intended synergies from the first transaction suggest sticking around is a better call.
AirAsia super-app SPAC will require sick bag 8 Jul 2021 The Malaysian carrier led by Tony Fernandes is swapping a 4.8% stake in its fledgling e-commerce and fintech division for Gojek’s Thai business. The deal imputes a $1 bln valuation, and a sky-high multiple of sales. A planned spin into a public listing promises a dizzying ride.
Thailand previews difficult life without tourists 6 May 2021 The country looks ill-prepared for its fresh wave of viral contagion. With a slow vaccine rollout, foreign visitors won’t return anytime soon. It needs to wean itself off this economic crutch, but political unrest deters overseas investment. That’s a trying combination.
Thai beer float needs market fizz for top value 8 Feb 2021 Thai Beverage’s move to float 20% of its brewing business has strong echoes of the 2019 IPO of Budweiser’s Asia unit. To reach a mooted $10 bln equity value, it will need to match a bubbly valuation too. But it’s less profitable and Singapore listings aren’t known for froth.
Subpar Asian trade deal shines in splintered world 16 Nov 2020 Fifteen nations accounting for 30% of global GDP will slash tariffs and ease the movement of goods in the region. India’s absence is among the disappointments of the long-awaited pact. Even modest progress counts for a lot considering the sad state of U.S. and UK trade affairs.
Tesco’s Asia retreat seals humdrum UK future 9 Mar 2020 The retailer sold its Thai and Malaysian units for $10.6 bln. The price of 12.5 times EBITDA suggests CEO Dave Lewis prioritised a fast sale. Investors will pocket a 5 bln pound special dividend. With a clear focus on its dominant British business, Tesco will be safer but duller.
Thai IPO tests waning market enthusiasm 20 Feb 2020 Central Retail shares opened flat on their debut. Cornerstone investors helped it price near the top of its range, although the economic timing couldn’t be worse. Thailand’s listing market has stayed hot even as post-IPO performance has cooled. One of these trends can’t last.
Thai tycoons set for uphill battle over Tesco Asia 6 Feb 2020 The UK grocer could sell its Asian assets for $9 bln. As the Thai economy slows, foreign buyers are steering clear, leaving the country’s most powerful families to duke it out. With antitrust watchdogs alerted, and financing issues aplenty, a smooth checkout looks unlikely.
Thailand’s capital markets are anything but sick 10 Jan 2020 Central Retail is raising up to $2.7 bln in a record IPO, putting the country on course to be top for new issues in Southeast Asia for a fourth year. As Thai Inc looks abroad for growth, helped by a strong currency, it’s a reminder that the market’s relative maturity has upsides.
Torpor at home lures Thai lender to pricey Jakarta 13 Dec 2019 Bangkok Bank has beaten Japanese rivals to take control of Indonesia's Permata, for some $2.7 bln. StanChart, selling along with a local conglomerate, gets a welcome boost. For Bangkok, though, a deal at near twice the target's book value is a necessary gamble on faster growth.
Tesco leaves Asia with a full cart 9 Dec 2019 Britain's biggest grocer may sell its business in Thailand and Malaysia. Thai peer Central Retail should list at a rich valuation, making it a good time to exit before regional economies cool further. The likes of prior owner CP Group could put $9 bln in Tesco’s pocket.
The Exchange: The Asianisation of the world 17 Sep 2019 A splintering West and increasingly interconnected East is creating a newly powerful mega-region, according to Parag Khanna, author of “The Future is Asian.” He swung by the Breakingviews office in Hong Kong to break down the economic and geopolitical rationales behind his idea.
Baht’s brawn weakens sick man of Southeast Asia 19 Aug 2019 Thailand’s $500 bln economy expanded at its slowest rate in nearly five years last quarter, hit by cooling exports and tourism. Yet its currency is an outperformer, aggravating both problems. Lower rates and public spending could weaken it, as might investing more funds abroad.