Jardine Cycle & Carriage acquires 24.9% stake in Siam City Cement

For a total of USD615m.

Siam City Cement is the second largest cement manufacturer in Thailand with three cement plants and total cement production capacity of 14.5m tons per annum.

According to a report by RHB, Jardine Cycle & Carriage (JCNC) has acquired a 24.9% stake in Siam City Cement, for USD615m, from Holcim Limited.

JCNC’s purchase price represents a discount of 2% to the last traded price of THB358 and is the group’s maiden investment in Thailand. JCNC’s key interest is its 50.1% in Astra International, Indonesia’s largest conglomerate with diverse business lines from financial services, heavy equipment and mining, agribusiness, infrastructure and logistics.

According to RHB, in recent years, JCNC has broadened its regional businesses, investing in automotive distributors in Vietnam and Myanmar. The investment in Siam City Cement is made with a view to further expand its regional reach and provide the group with a meaningful exposure to the Thai economy in an established sector in a proven company.

Siam City Cement also produces concrete and other building materials.