Thai Beverage (ThaiBev) Y92 is seeking to delist its subsidiary, Oishi Group, from the Stock Exchange of Thailand.
On March 10, the food and beverage (F&B) group announced that its board has approved the group’s plan to make a tender offer of all the 76.3 million shares in Oishi Group at 59 baht ($2.29) per share.
The 76.3 million shares represent some 20.34% of the total number of shares that ThaiBev doesn’t already own in the Oishi Group.
The reason behind the delisting is due to the lack of trading volume in Oishi’s shares. The delisting also presents an opportunity for ThaiBev to acquire the shares in Oishi that it does not already own from the rest of Oishi’s shareholders, says ThaiBev.
As at Dec 13, 2022, ThaiBev holds some 298.7 million shares in Oishi, or 79.66% of the total number of issued shares in the latter.
ThaiBev adds that the delisting comes at a time when it is currently “conducting a feasibility study into a potential restructuring” of its food and non-alcoholic beverages businesses.
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“The company may undertake internal restructuring to clearly separate the food business from the non-alcoholic beverages business, including business restructuring in various aspects, which may include the purchase, sale, or transfer of assets or other rights, mergers and acquisitions… among others,” says the group.
The listing will also help the group to save money from any fees incurred with Oishi’s listed status on the Thai stock exchange, it adds.
The book value of the offer Oishi shares is around 1.62 billion baht based on Oishi’s financial statements for the FY2022 ended Sept 30, 2022. The net tangible asset (NTA) value of the offer Oishi shares is around 1.59 billion baht.
ThaiBev, in May 2008, announced its plans to take over the Oishi Group for 6.94 billion baht, or 37 baht per share, which was a premium to Oishi's then-share price of 35 baht. Oishi is a household name in Thailand known for its Japanese food and green tea. The group has over 250 restaurant outlets throughout the country. The business began in 1999 when the first “Oishi” restaurant was opened in Thailand.
Shares in ThaiBev closed flat at 64 cents on March 10.
