Bakers, CC lead as Thailand’s Chearavanont buys retailer for $6.6bn

Baker & McKenzie and Clifford Chance have played lead roles on Thai group CP All’s $6.6bn (£4.3bn) acquisition of a controlling stake in retailer Siam Makro from SHV Holdings.

Thinawat Bukhamana
Thinawat Bukhamana

Bakers advised CP All, Thailand’s largest convenience store chain, which is part of Thai billionaire Dhanin Chearavanont’s Charoen Pokphand Group. It also owns Thailand’s 7-Eleven stores. The Bakers team was let by Bangkok partners Thinawat Bukhamana, Kitipong Urapeepatanapong, Theppachol Kosol, and Chaveewan Likhitwattanachai.

Clifford Chance Bangkok corporate partner Andrew Matthews led the advice to the seller, Dutch trading company SHV.

Allen & Overy, led by Hong Kong-based banking and finance partner Ian Powell, advised on the financing side of the deal, acting for the mandated lead arrangers. It is understood CP All is financing the deal entirely through debt. HSBC acted as the sole adviser to SHV on the deal, while Siam Commercial Bank advised CP All. Both lenders – advised by A&O – are also in the syndicate of banks providing a financing package for CP All.

Background to this deal:

Driven by the rising cash flow and the strong baht, Thai companies have been active in M&A transactions in the region. Prior to this deal, Charoen Pokphand acquired a 15.6 per cent stake in China’s Ping An Insurance Group from HSBC for $9.4bn (5 December 2012). The legal line-up for the Ping An acquisition differed from the Siam Makro deal. On the Ping An transaction, Charoen Pokphand was advised by Linklaters Hong Kong corporate partner Tien Chao and HSBC was advised by Freshfields Bruckhaus Deringer China chair Teresa Ko.

Clifford Chance Bangkok-based counsel Joseph Tisuthiwongse recently advised Siam Commercial Bank on the financing of a solar power project in Thailand. Siam Commercial Bank is acting as the financial adviser to CP All in the Siam Makro acquisition. Clifford Chance’s Amsterdam office has also previously worked with SHV.