For a country seen by some outsiders to be beset by political turmoil and rural insurgency, never mind last fall’s calamitous flooding, Thailand has done remarkably well by its richest. Their collective wealth is up by better than 20% for a second straight year, giving some the wherewithal to seek expansions in Southeast Asia and beyond.
Cans of Tiger beer, brewed by Asia Pacific Breweries (APB), are displayed at a convenience store in... [+]
No. 3 Charoen Sirivadhanabhakdi’s ThaiBev has been aggressively bidding for Asia Pacific Breweries (Tiger beer) against Heineken, which likewise has an existing stake and is trying to expand into Asian markets to counter weak European consumer demand. In August, ThaiBev upped its stake in dominant APB holder Fraser and Neave to 29%, a 30% threshold triggers a mandatory offer for the entire company. Meanwhile, Charoen’s son-in-law tried to make a bid for F&N’s direct holding at a higher price than Heineken. Says Lim Jit Soon, analyst at Nomura Securities, “[It is] no risk for [Charoen] as the worst that would happen is he would sell back the shares to Heineken at the price he bought them for.”
Click here for our full list of Thailand's Richest
Many of Thailand’s wealthiest are looking to take on international rivals, on the strength of an expected 6% growth in the Thai economy this year. In January Prime Minister Yingluck Shinawatra (sister of Thaksin Shinawatra, No. 23) cut corporate tax rates to 23% from 30%; the rates are to drop further, to 20%, in 2013 and 2014. The SET stock index is up 19% (total return in Thai baht) over the past year. As a result the collective wealth of Thailand’s richest jumped to $55 billion.
Thailand’s wealthiest, Dhanin Chearavanont, reigning FORBES ASIA Businessman of the Year for his interests in China, boasts an estimated net worth of $9 billion. He’s stated his interest in the likes of France’s Carrefour and the U.S.’ Smithfield Foods. Others expanding abroad include Kraisorn Chansiri (No. 25), whose Thai Union Frozen is on a foreign-acquisition spree; Aloke Lohia (No. 8), who is starting one of the first polyethyleneterephthalate businesses in Africa, and William Heinecke (No. 24) whose hospitality company, Minor International, recently opened two managed hotels in Abu Dhabi and Bali.
Meanwhile medical tourism adds two newcomers to the list: Chalerm Harnphanich (No. 33), who created a $285 million fortune with his Bangkok Chain Hospital, and Wichai Thongtang (No. 20). Thongtang, Thaksin Shinawatra's (No. 23) former lawyer, along with Prasert Prasarttong-Osoth (No. 9) and Pongsak Viddayakorn (No. 27), are benefiting from a 50% uptick in Bangkok Dusit Medical Services share price.
Other gainers include Krit Ratanarak (No. 5) who is listed on the Thai 40 Richest list with a shared $3.1 billion family fortune and who, based on his own shareholdings, also became a dollar billionaire this year. The Chirathivat family fortune is up $2.6 billion to $6.9 billion as they continue to expand their retail empire. (see story) Boonchai Bencharongkul's (No. 13) net worth skyrocketed 80% as his cellular operator, Total Access Communication, benefits from booming business.
Fortune also favored returnees Phornthep Phornprapha (No. 17) who oversees family firm Siam Motors, and Paiboon Damrongchaitham who just makes the cut at the bottom of the list as his GMM Grammy entertainment conglomerate soared with the Euro Cup finals.
Another media mogul growing his base: Vichai Maleenont (No. 7). Revenues from shows and concert like Lady Gaga's helped his BEC World group outperform expectations.
Others did not fare as well. Five fortunes are down including Prachai Leophairatana (No. 39). The stock price of his cement maker TPI Polene declined 19% over the past year.
The cutoff this year was $200 million, leaving behind four, including Wit Viriyaprapaikit, who chairs southeast Asia’s largest steel sheet producer. The company’s share price has nearly halved from one year ago after several quarters of red ink linked to low steel prices and delays in restarting the mothballed UK steel plant SSI bought in 2011 for $469 million. Sister and brother Nijaporn Charanachitta and Premchai Karnasuta also fail to make the cut as their respective companies falter. Charanachitta chairs Oriental Hotel whose stock price is down 27% over the past year, while mining engineer Karnasuta's ItalianThai Development, one of Thailand's largest construction firms, is also sluggish. Virot Thanalongkorn's lingerie contract manufacturer, Sabina, also falls short with a stagnating stock price despite a 5 to 1 stock split in August.
The fortune left behind by long-time Thai rich lister and Red Bull co-founder, Chaleo Yoovidya, who died in March, is in the process of being distributed among his 11 children (the family stays on the list at No. 4 with a $5.4 billion net worth). Several children are involved in the business: son Saravoot is a managing director at Red Bull Thailand; son Jiravat looks after hospital and real estate interests; son Sakchai is also a property developer; and daughter Suthirat is Red Bull’s director for corporate social relations. Son Chalerm (No. 36) separately owns 2% of Red Bull given to him for introducing his late father, Chaleo, to Austrian cofounder Dietrich Mateschitz. He may also gain once the estate is settled in the coming years.
