The share price of Siam Makro Public Company Limited (SET: MAKRO) soared more than 7% despite negativity in the market that dragged Thailand’s SET Index to close 0.58% lower.
The surge came after the report of CP Group is expecting to terminate the $1 billion deal for Metro Cash and Carry’s India operations and assets, according to the source close to the matter on Monday.
The news of a new acquisition of CP Group came in late August, stating that the Thai conglomerate was placing a non-binding bid of around Rd8,000 crore (approx. $1 billion) for Metro Cash and Carry’s India operations and assets, which are up for sale.
After the news broke out, Bualuang Securities believed that Makro, a subsidiary of CP Group, would be the one to place the bid.
However, there is no report on the reason that led to this termination by CP Group.
MAKRO closed the trading session on Monday at THB35.50, increased THB2.50 or 7.58%. Meanwhile, Charoen Pokphand Foods Public Company Limited (SET: CPF), which is another subsidiary of CP Group, closed at THB24.60, increased slightly by THB0.10 or 0.41%.
Thailand’s SET Index closed at 1,570.57 points, decreased 9.09 points or 0.58% due to global negativity of Fed’s aggressive rate hike after a report of strong labour market in September.