Unveiling the Reasons Why PB’s Shares Freeze after Tender Offer

Try to picture yourself inviting 10 guests to dinner at your place, but you end up only serving eight a la carte dishes to eight guests, while the others just drink water? Thai President Foods Public Company Limited (TFMAMA) is now representing as the host of the aforementioned dinner.

TFMAMA is usually known as MAMA, Thailand’s most popular instant noodle, or MAMA shares, and they have made a tender offer to buy all of President Bakery Public Company Limited (PB)’s shares, known as Farm House (bread) shares, at ฿61.16/share.

It is very strange that after the tender offer has been announced, the price of PB’s shares and value remains unchanged, unlike any other shares that keeps hiking in price and value after a tender offer is announced.


A simple explanation for this is because most of PB’s shareholders are in the Sahapat Group both individuals and subsidiaries, while TFMAMA is also one of Sahapat Group as well! Now, we know that the shareholders of PB’s shares from Sahapat Group represent the eight guests in the dinner party. So, what about the other two guests? Of course, they are small investors.

When all parties except two guests are all benefited from this take over, there is no reason to speculate the price and just wait to pour all their 10 billion baht of PB’s shares to TFMAMA.

This tender offer from TFMAMA is no different than switching your wallet from your right pocket to your left one. 46.90% of PB’s stake has been held by TFMAMA, while another 21.58% is being held by Saha Pathana Inter-Holding Public Company Limited.


Presently, Sahapat has three main income sources, which are Foods, Apparels, and cosmetics. The investment is about 1-2 billion baht per year.

Not long ago, Sahapat Group acquired all of President Holding Company Limited (PH)’s shares, and purchase all the assets of President Rice Products Public Company Limited (PR) and President Bakery Public Company Limited (PB) through their subsidiary, Saha Pathana Inter-Holding Public Company Limited (SPI).

It is because of this strategy from Sahapat Group ,PB’s shares have been frozen since the tender date. What a brilliant move from Sahapat Group!