Bangkok--31 May--SCG
SCG adjusted the portfolio of assets in sanitary ware and fitting businesses, primarily owned by SCG and TOTO Group of Japan. This adjustment will increase SCG’s management capability and flexibility to sustain business expansion in the future and drive product brands of SCG as global brand.
Mr. Kan Trakulhoon, President and CEO of SCG, announced that the Board of Directors of SCG approved the portfolio adjustment of assets in sanitary ware and fitting businesses which are primarily owned by SCG and TOTO Group of Japan. This portfolio adjustment consists of transferring all shares in Siam Sanitary Ware Company Limited (SSW), and Siam Sanitary Fittings Company Limited (SSF) from TOTO Group. Valued at 2,600 MB, SCG’s stakes in SSW and SSF will increase to 71.4 per cent (from 35.7 per cent) and 90.6 per cent (from 44.8 per cent), respectively.
Moreover, all of SCG’s 40 per cent stake in TOTO Manufacturing (Thailand) Company Limited (TMT), a manufacturer of sanitary ware and fitting products, will be transferred to TOTO Group at 368 MB.
“This adjustment, the consolidation of SSW and SSF and the complete share sell down in TMT, is aimed to increase flexibility in managing SCG’s future business expansion, global brand marketing efforts, and other synergies for the sanitary ware and fitting assets which is in line with sustainable growth strategies towards ASEAN business leader of SCG. However, the two companies will continue to trade products on an OEM basis and will maintain favorable relationships with each other.” Mr. Kan said.
Siam Sanitary Ware Company Limited (SSW) and Siam Sanitary Fittings Company Limited (SSF) are the leading manufacturers of sanitary ware and fitting products under the “COTTO” brand name. In FY2012, these companies had combined sales of approximate 5,100 MB, net profit of 320 MB, and assets of 3,600 MB.