(From left to right) Aiyawatt Srivaddhanaprabha, CEO of King Power Group; Vichai Srivaddhanaprabha, King Power Group’s chairman; Tassapon Bijleveld, CEO of Thai AirAsia; and Arthid Nanthawithaya, CEO and deputy chairman of the executive committee of Siam Commercial Bank at the official press conference
CHAIRMAN of King Power, Vichai Srivaddhanaprabha, together with his family, has taken a 39 per cent stake in Asia Aviation PCL (AAV), which holds a majority 55 per cent stake in Thai AirAsia.
The deal, valued at around 7.9 billion baht (US$225.8 million), calculated at 4.2 baht per share for approximately 1.9 billion shares, is purchased from Tassapon Bijleveld, CEO of AAV and Thai AirAsia, and his family. Tassapon will continue to lead AAV and Thai AirAsia after the sale.
In a joint statement, Vichai stated that he hopes to create better synergies between Thai AirAsia and King Power, the only duty-free operator in Thailand, through this acquisition.
The statement added that the share pricing of 4.2 baht per share, a sum significantly lower than market price, is due to laws and regulations that airline businesses in Thailand need to have at least 51 per cent of their shares owned by Thai nationals.
“Given the restrictive nature of such rules, there are only a handful of Thai individuals who, realistically, would be interested in and could afford the purchase price,” it stated.
Vichai also appointed Aiyawatt Srivaddhanaprabha, Apichet Srivaddhanaprabha and Sombat Dechapanichkul as directors of AAV, tasked with identifying and planning the company’s visions and business strategies together with Tassapon and the management of Thai AirAsia.
Aiyawatt, who is also CEO of King Power, said that the two companies will cooperate to create new business opportunities, highlighting specifically the large customer bases in China and South-east Asia.
“Thai AirAsia and King Power will team up to develop their brands, products and services together, with the aim of providing customers with international-quality shopping and travel experiences at affordable prices,” he said.
