Tan Passakornnatee Family

Transcription

1 8 M A Y 2014 Tan Passakornnatee Family Ilya Garger Editor in Chief ilya.garger@capitalprofile.com Darren Leung Analyst darren.leung@capitalprofile.com Founder and chairman of Thailand-listed bottle tea maker Ichitan Group Founder of Thailand-listed bottled drink maker and Japanese restaurant operator Oishi Group, now controlled by Charoen Sirivadhanabhakdi s Thai Beverage Well-known public figure in Thailand due to eccentric, personality-driven marketing Family of wife Sunisa (nee Sukpanthavorn) holds large stake in Ichitan Group Defaulted on THB 100m of debt in 1997 financial crisis before founding Oishi Sold plot of land in downtown Bangkok, as well as gas station license to son of Thaksin Shinawatra for THB 1bn in 2011 Capital Profile covers 10 family members and 11 companies David Wu Researcher david.wu@capitalprofile.com Jacob Li Analyst jacob.li@capitalprofile.com Jessica Kurnia Researcher jessica.kurnia@capitalprofile.com Willow Yang Reporter willow.yang@capitalprofile.com I N T R O D U C T I O N Tan Passakornnatee is the founder and chairman of bottled-tea maker Ichitan Group, which listed on the Stock Exchange of Thailand on 21 April He is also the founder of Oishi Group, an SET-listed food and beverage company which he sold to Thai Beverage chairman Charoen Sirivadhanabhakdi before starting Ichitan. Both of his companies have been characterized by rapid market-share expansion through aggressive branding strategies. Tan is a wellknown public figure in Thailand due to his personality-driven marketing campaigns, in which he acts as the primary spokesman for his brands. He is also involved in high-profile philanthropic activities through his Tan Pan Foundation. Background and Family Tan Passakornnatee was born in Penang, Malaysia to a Chinese immigrant business family, according to published interviews. Tan attended a bilingual Chinese-English school in Penang before dropping out and moving to Chonburi, Thailand, where his family had relocated. In Thailand he started his first business, a newsstand at a bus station in Chonburi, with a THB 50,000 loan from his parents, according to an interview in Thai newspaper Prachachart Turakij. He expanded his business to include a gift shop, a bakery and a restaurant, before eventually acquiring apartments and entering the real estate business, according to the Ichitan Group website and Prachachart Turakij. In 1997 his business collapsed amid the Asian Financial Crisis, and Tan sold most of his assets to help settle THB 100m of debt, some of which was rescheduled, according to media inter Mergermarket Limited. All rights reserved. 1

2 Tan Passakornnatee Family views. In 1999, he moved from Chonburi to Bangkok and focused on building a chain of wedding studios that he owned with his wife. He opened the first Oishi Japanese buffet restaurant in Tan told the Bangkok Post in 2011 that the business was inspired by a comment from Vanchai Chirathivat, who at the time was the head of the Central Group, about a Japanese buffet restaurant he visited in the US. Soon after starting his Oishi restaurant chain, he entered the bottled green tea business, according to the Ichitan Group website and Prachachart Turakij. Oishi Group listed on the SET in Tan s wife Eng (also known as Sunisa) is vice chairman of Ichitan Group, and was a shareholder and board member of Oishi Group until She and her family, surnamed Sukpanthavorn, have been significant shareholders in Tan s companies. Eng held a 9.23% post-ipo direct stake in the company, compared to Tan s 13.85% direct stake. Her brother Jaruvorn Sukpanthavorn was the third-largest individual shareholder with 7.85%. Other individual shareholders surnamed Sukpanthavorn include Jaruvat (3.10%), Supanee (3.15%), Jamnien, Sukanya and Sutachanant (less than 1%). Other individual shareholders surnamed Passakornnatee include Varisa (2.31%) and sister Tantita (0.12%). Varisa, Tan s daughter from his previous marriage, is also coowner of a restaurant in Bangkok called Zaab Eli. Acquisition of Oishi by Thai Beverage In 2006, Tan sold a majority stake in Oishi Group to an investment company controlled by Charoen Sirivadhanabhakdi, the owner of Singapore-listed Thai Beverage. Charoen used a private vehicle for the deal after the board of Thai Beverage turned down a proposal to acquire Oishi, The Nation reported in January Thai Beverage eventually acquired Oishi in Charoen s acquisition of Oishi reflected his aim of broadening Thai Beverage s position in the drinks market beyond its core business of alcoholic beverages (its flagship products are Beer Chang, Sangsom rum and Mekong whiskey). Split with Oishi and Founding of Ichitan Tan and his wife remained on the board of Oishi until 2011, when they sold their remaining stake. Tan said at the time that he wanted to focus on his property and restaurant business. However, soon after leaving Oishi along with over 30 employees, he founded Ichitan to compete directly with Oishi s bottled tea business, Positioning magazine reported. According to Manager Online, Ichitan had surpassed Oishi s market share for the bottled green tea by 2014 after three years of intense marketing campaigns and price competition, as well as high-profile CSR activities. Publicity efforts ahead of Ichitan s listing included giving away bars of gold, raffling Porches, and offering 5,000 shares to the first 250 people bringing Ichitan bottle caps to the stock exchange headquarters, according to the Wall Street Journal. Hundreds of people camped at the SET in response to the bottle-cap-for-equity offer, and the stock gained 25% in its first day of trading. Political Remarks In November 2013, Tan was cited as saying in an interview with Thanturakij newspaper that he disagreed with anti-government protesters continuing with efforts to overthrow the government after the withdrawal of a controversial amnesty bill which was the original target of protests. In the interview, Tan was critical of protest leaders call for people to stage a general strike and join the protests, and he noted that the antigovernment group represented a minority of the population. In response, protest leader Suthep Thaugsuban called for a boycott of Ichitan products. Tan later stated via his Facebook page that the episode had been a misunderstanding. Philanthropy After founding Ichitan Group, Tan established the Tan Pan Foundation, which provides funding for education and environmental causes. Half of the earnings from his and his wife's stakes in Ichitan Group are donated to the foundation. After Tan turns 60 in 2019, the donations will increase to at least 90%, according to Ichitan s website Mergermarket Limited. All rights reserved. 2

3 Tan Passakornnatee Family I N D I V I D U A L S NAME NOTES Tan Passakornnatee Sunisa Passakornnatee Tantita Passakornnatee Founder and chairman of Thailand-listed bottled-tea maker Ichitan Group, and founder of Oishi Group "Eng" is second wife of Tan Passakornnatee; Senior Executive Vice President of Ichitan Group; shareholder of Ichitan Group Sister of Tan Passakornnatee; shareholder of Ichitan Group Varisa Passakornnatee "Gift" is daughter of Tan Passakornnatee and first wife; shareholder of Ichitan Group; co- Jamnien Sukpantavorn Mother of Sunisa Passakornnatee; shareholder of Ichitan Group Jaruvorn Sukpantavorn Brother of Sunisa Passakornnatee; shareholder of Ichitan Group Jaruwat Sukpantavorn Sukanya Sukpantavorn Supanee Sukpantavorn Sutachanant Sukpantavorn A F F I L I A T I O N S AFFILIATION NOTES Panthongtae Shinawatra Sorayuth Suthassanachinda Tan Pan Foundation Vanchai Chirathivat Tan Passakornnatee sold 1.5 rai of land in Bangkok's Ploenchit area, as well as a gas station rental contract under his company Plernchit Arcade Co Ltd, to Panthongtae Shinawatra in 2011 for approximately THB 1bn, according to Isaranews. Panthongtae is the son of ex-prime Minister Thaksin Shinawatra. However, Tan denied being affiliated with the Shinawatra family, saying the deal was made through a broker and he only learned the buyer's identity on the day the contract was signed. Sorayuth Suthassanachinda is a TV anchor at Thailand's Channel 3. In 2012, Tan Passakornnatee coinvested in a real estate business with Sorayuth's Rai Som Co Ltd. The JV is called DST Asset Co Ltd. Tan Passakornnatee established the Tan Pan Foundation, which provides funding for education and environmental causes. Half of the earnings from his and his wife's stakes in Ichitan Group are donated to the foundation. After Tan turns 60 in 2019, the donations will increase to at least 90%, according to Ichitan s website. Tan told the Bangkok Post in 2011 that his decision to open the original Oishi Japanese buffet was inspired by a comment from Vanchai Chirathivat, who at the time was the head of the Central Group, about a Japanese buffet he visited in the US. The Chirathivat family is one of Thailand's wealthiest and is a key player in the country's mall, retail and F&B industries Mergermarket Limited. All rights reserved. 3

4 2014 Mergermarket Limited. All rights reserved. 4

5 2014 Mergermarket Limited. All rights reserved. 5