Thailand can ride out succession pain 13 Oct 2016 The late King Bhumibol was a unifying force in a divided nation. Yet the military has tightened its grip of late. That makes a fresh power struggle, and accompanying economic turmoil, less likely. It also means the junta's grand public-spending plans should survive.
Red Lobster is good catch for Thai Union 11 Oct 2016 Paying $575 mln for a stake in Red Lobster, the U.S. seafood restaurant chain, is a big strategic leap for the owner of Chicken of the Sea tinned tuna. But a low valuation, plus a juicy coupon on convertible preferred shares, befits Thai Union's track record as a smart acquirer.
Alibaba’s $1 bln Southeast Asia buy tests limits 12 Apr 2016 The Chinese e-commerce giant is taking control of upstart Lazada in its largest overseas deal to date. Countries like Indonesia and Malaysia offer new growth. But widening losses and fierce competition mean expansion is not cheap. It also dilutes Alibaba’s asset-light model.
Thai telco’s cash call rings True for China 4 Feb 2016 Thailand’s True Corp is raising $1.7 bln in its second share issue in as many years. That will help pay for spectrum and trim debt as competition heats up. But True shares are expensive. Without Chinese backing, investors might be wary of tycoon Dhanin Chearavanont’s moves.
China dumping fortifies Thai steelmaker debt woes 22 Sep 2015 Dumping by China has pushed struggling Sahaviriya over the edge: Thailand’s biggest steelmaker is in talks to restructure $1.4 bln of debt. As rival Tata Steel has found, buyers for high-cost European producers are scarce. That suggests SSI’s creditors will have to take the pain.
Bangkok attack shakes Thai economy’s last support 18 Aug 2015 The deadly bombing of a shrine will scare off tourists whose numbers were up 29 pct this year. It’s another jolt to an economy already grappling with flat exports and weak private investment. Military rulers have been slow to boost public spending. That’s making things worse.
Telco IPO a soft test for Thailand’s Teflon market 26 Jan 2015 Shares are continuing to rally even as doubts grow about the economy’s health under army rule. Jasmine’s $1.2 billion offer of infrastructure assets looks a relatively safe bet. Even so, it needs a plump dividend to draw investors to one of Thailand’s biggest listings.
Asian conglomerates lose plot in $10bln CITIC deal 20 Jan 2015 That’s what Japan’s Itochu and Thailand’s CP Group are spending to buy 20 pct of the state-controlled Chinese giant. Only then will the three decide how they can work together to create value. The back-to-front deal allows CITIC to tick a “reform” box while giving up very little.
Cheaper oil no friend to Asia’s households 24 Dec 2014 Real wages are growing 2 percentage points below their long-term average, reflecting labour’s weak bargaining power amidst slowing growth. Falling oil prices and low inflation could prompt employers to be even more tight-fisted in 2015. Household finances might wobble.
Thai Union sets right flavour for Asian food M&A 19 Dec 2014 When little-known Asian buyers pounce on foreign companies, the resulting deals are often overpriced or lacking in strategy. The $1.5 bln Thai purchase of U.S. tinned seafood company Bumble Bee swims against the tide. Thai Union’s focused, low-key approach has lessons for others.
Tesco’s best option in Asia is a Thai IPO 5 Dec 2014 The British supermarket wants to raise cash. Its business in Asia is healthy with good growth potential. If Tesco wants to retain control, listing 46 pct of its fast-growing Thai operations in Bangkok could raise 2 bln pounds. That’s enough to shore up the group’s balance sheet.
Global airline IPOs still need tailwind to fly 3 Oct 2014 From America to Asia, airlines are eyeing share sales. Most offers since 2010 have lost altitude. The industry’s returns are improving but remain below the cost of capital. The latest listings will need a gimmick or something special to buck the trend of value destruction.
Aggressive M&A puts focus on Thai tycoon’s empire 27 Aug 2014 Charoen Sirivadhanabhakdi is eyeing more deals on top of the $3.3 bln his drinks-to-property group has spent this year. Investors have given a poor reception to his recent transformative acquisitions. A pick ‘n’ mix approach to public markets may explain some of the doubts.
Asian airlines strive for return to mediocrity 22 Jul 2014 Tragedy and political upheaval provide a chance for Malaysia Airlines and Thai Airways to restructure deeper than before. State shareholders can help or hinder. Even when in good shape, running an airline in an oversupplied region is a tough business.
Thai junta can revive growth but debt will hurt it 1 Jul 2014 The central bank in Bangkok has turned less gloomy about short-term prospects. But before the new army government takes credit for avoiding a near-certain recession, it needs to worry about the huge credit buildup. Deleveraging in an ageing society could become a permanent drag.
Thai telco gets better end of China Mobile deal 10 Jun 2014 True Corp is selling an 18 pct stake to the state-backed operator as part of a wider $2 bln share issue. True reduces its debt and gains a cash-rich partner to support its aggressive growth. For China Mobile, the minority stake is a pricey way to kick-start its overseas push.
Unavoidable coup is awful for Thai economy 23 May 2014 The latest military takeover fills a power void, but won’t heal the country’s deep divisions. As in 2006, junta-initiated “reform” may be a ruse for the elite to deny political control to rice farmers. The increased risk of violent conflict leaves the economy further adrift.
Yingluck ouster makes Thailand Asia’s sick man 7 May 2014 A court has fired the prime minister and a part of her cabinet. While the rest of the caretaker government has survived, the opposition is unlikely to allow fresh polls soon. With no leader to guide it, the economy will be Asia’s worst performer, and perhaps not just this year.
Deepening Thai crisis will worsen economy’s dive 24 Mar 2014 A court has voided the Feb. 2 poll that Prime Minister Yingluck Shinawatra most likely won. Soon, an anti-graft agency may demand her impeachment. The purge will worsen the power vacuum, and raise the risk of violence. Hopes of an economic revival later this year are fading.
Thai telco bets on yield to defy political turmoil 21 Feb 2014 Protests and low valuations make it an odd time for Jasmine to seek $1.4 bln by spinning off its broadband infrastructure assets. With interest rates expected to rise, issuers are under pressure to act while they can. But winning over investors may require a sweet dividend.