Thai Berli on course to raise $6.2 bln for Casino supermarket firm -sources

Krung Thai Bank PCL

04/03/2016 08:48

By Manunphattr Dhanananphorn and Chien Mi Wong 
    BANGKOK/HONG KONG, March 4 (Reuters) - Thailand's Berli 
Jucker Pcl  BJC.BK  has tapped foreign banks including BNP 
Paribas  BNPP.PA  as well as domestic lenders to raise $6.2 
billion for its acquisition of Big C Supercenter  BIGC.BK , 
putting it on track to successfully meet a March 31 financing 
deadline. 
    Berli, the core retail business of Thai tycoon Charoen 
Sirivadhanabhakdi, won a hotly contested auction for the 58.6 
percent stake in Big C owned by France's Casino Group  CASP.PA . 
    But the deal, which will include an offer to buy out 
minority shareholders, is expensive and there had been concerns 
among loan market players that financing might not come together 
before the deadline, triggering a $600 million breakup fee. 
    "They will cobble together the amount," said a senior banker 
whose bank was approached for the financing deal. 
    Berli is seeking 3.1 billion euros ($3.4 billion)to buy 
Casino's stake from mostly foreign banks, while Thai banks will 
largely provide the local currency component for a general offer 
to buy Big C shares from remaining shareholders, they said. 
    Other foreign banks on board for financing include Rabobank 
and the Industrial and Commercial Bank of China (ICBC), people 
with knowledge of the deal said. They added that lenders 
thinking of participating included HSBC  HSBA.L , Standard 
Chartered  STAN.L  and Japan's Mizuho Bank  8411.T . 
    The people declined to identified as they were not 
authorised to talk to media on the matter. HSBC, Standard 
Chartered, BNP Paribas and Mizuho declined to comment. ICBC and 
Rabobank did not immediately respond requests for comment. 
    Berli officials are not immediately available for comment. 
    Thailand is one of Southeast Asia's most profitable retail 
markets but analysts have warned that the debt will boost 
Berli's debt to equity ratio by more than eight times, forcing 
it to raise equity. 
    The deal is pending approval from Berli's shareholders on 
March 21. 
    Among Thai banks, Krung Thai Bank  KTB.BK , Siam Commercial 
Bank  SCB.BK  and Kasikornbank  KBANK.BK  were likely to join 
the group of lenders, sources said. 
    "They are discussing terms and conditions. It should take 
around 1 to 2 weeks to close the deal," said a financial source 
with direct knowledge of the deal, adding that the loans will be 
provided to Berli and its subsidiaries. 
    Siam Commercial and Krung Thai said they were interested in 
participating. Kasikornbank declined to comment. 
($1 = 0.9136 euros) 
 
 (Additional reporting by Khettiya Jittapong in Bangkok, Saeed 
Azhar in Singapore and Taiga Uranaka in Tokyo; Chien Mi Wong is 
a reporter for Thomson Reuters LPC in Hong Kong; Editing by 
Edwina Gibbs) 
 ((khettiya.jittapong@thomsonreuters.com; 66 2 648 9728; Reuters 
Messaging: khettiya.jittapong.thomsonreuters.com@reuters.net)) 
 
Keywords: CASINO M&A/THAILAND