JARDINE Cycle and Carriage (Jardine C&C) has proposed to sell its entire 25.5 per cent stake, or 76.1 million shares, in Siam City Cement (SCCC) for 12.2 billion baht (S$458.7 million).
The proposed sale is “consistent with Jardine C&C’s strategy to evolve its portfolio in line with its long-term growth and sustainability objectives”, said the automotive retailer in a bourse filing on Friday (Aug 16).
SCCC is a cement and building material company listed on the Stock Exchange of Thailand. The sale consideration, at 160 baht per sale share, is above SCCC’s closing price of 141 baht on Aug 15 – the market day immediately preceding the announcement.
The buyer, Sunrise Equity, is an existing shareholder of SCCC, and is also part of the Ratanarak Group that is the controlling shareholder of SCCC.
Cash proceeds raised from the proposed sale will be used for Jardine C&C’s internal funding requirements, the company said.
Upon completion of the sale, Jardine C&C will cease to own any shares in SCCC and the latter will cease to be an associated company of the former.
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Jardine C&C does not expect the sale to have a material impact on its net tangible assets or underlying earnings per share.
Had the proposed transaction taken place on Jan 1, 2023, it would have caused a 10 per cent fall in Jardine C&C’s earnings per share for its financial year ended Dec 31, 2023, but would have no impact on its underlying earnings per share.
Had it taken place on Dec 31, 2023, it would have had no material impact on the group’s net tangible assets per share for FY2023.
Jardine C&C expects the proposed sale to be completed on Aug 19, 2024, or otherwise agreed in the sale and purchase agreement.
Shares of Jardine C&C closed 0.6 per cent or S$0.17 higher at S$26.57 on Friday, before the announcement.
