Pyramidal structure in Thai family firms: Case study of Southern Concrete Pile Public Company Limited

  • Post author:
  • Post category:Uncategorized

A point in case is Southern Concrete Pile Public Company Limited. The company is a part of Thai business groups referred to as the Chinteik Brothers Group, which was founded by the Nganthavi family. Based on ownership information for 2015, the Nganthavi family owns 11.15% of Southern Concrete Pile Public Company Limited directly and controls 31.16% of Southern Concrete Pile Public Company Limited indirectly through the group’s privately held holding companies. The family also enjoys more votes concerning the management of Southern Concrete Pile Public Company Limited indirectly through this pyramidal structure. It holds 12.79% of shares in Thai Wire Products Public Company Limited, which is the publicly traded company that owns 1.19% of Southern Concrete Pile Public Company Limited. In total the Nganthavi family controls 43.50% of Southern Concrete Pile Public Company Limited. At the same time, there are cross-holdings because Southern Concrete Pile Public Company Limited also holds 9.99% of Thai Wire Products Public Company Limited.

References

Swanpitak, T., Pan, X., Suardi, S., 2020a. Family control and cost of debt: Evidence from Thailand. Pacific-Basin Finance Journal, 101376.