The Siam Cement Public Company Limited (SET: SCC) announced on Wednesday its plan to raise capital through an initial public offering and listing of the ordinary shares of its subsidiary SCG Decor, which is recognized as the new flagship of the SCC group, on the Stock Exchange of Thailand, as part of the business restructuring of ceramic tiles and sanitary wares, and added that it will also make a tender offer of all shares of SCG Ceramics, or COTTO, and will delist the latter from a listed company in the stock market afterwards.
The Board of Directors’ Meeting of SCC on Wednesday has a resolution to approve the restructuring of the group of subsidiaries by designating SCG Decor Company Limited (SCG Decor) as the flagship company of the SCC group to undertake the manufacturing business of floor tiles, wall tiles, and sanitary ware in both Thailand and abroad.
Regarding the selling of floor tiles, wall tiles, and sanitary ware, SCG Decor sells through various distribution channels, including SCG Decor’s own distribution channels such as manufacturing outlets and other showroom outlets etc, and SCG Decor will proceed to be the sole listed company in the Stock Exchange of Thailand in the floor tiles, wall tiles, and sanitary ware manufacturing business.
In this regard, in order to follow the restructuring plan, SCC has a plan to raise funds through an initial public offering and listing of the ordinary shares of SCG Decor on the SET. This IPO will be conducted concurrently with the tender offer of all shares of SCG Ceramics Public Company Limited (SET: COTTO) held by other shareholders. After COTTO shareholders have passed resolution to approve the delisting of COTTO’s shares from the SET and the SET has approved the delisting of COTTO’s shares, COTTO’s shareholders who accept the tender offer will receive SCG Decor’s newly issued ordinary shares as compensation ( Share Swap) as there shall be no cash compensation as alternative.
COTTO will then proceed with the delisting of its shares from being listed securities. In order to make SCG Decor a single flagship company listed on the SET, COTTO will be delisted from the SET upon the completion of the tender offer and IPO of SCG Decor.
