The deal would enable King Power International Group, led by founder and chief executive Vichai Srivaddhanaprabha, to expand beyond its duty-free and hotel businesses, as well as ownership of the new English Premier League champions Leicester City.
King Power, the Thai duty-free conglomerate, announced that it had bought a $225 million stake in Thai Air Asia, the country’s largest budget carrier.
The deal would enable King Power International Group, led by founder and chief executive Vichai Srivaddhanaprabha, to expand beyond its duty-free and hotel businesses, as well as ownership of the new English Premier League champions Leicester City.
"I have always been interested in aviation businesses. We used to have 5% in Nok Air when it was launched but the stake was too small to make a difference," said Srivaddhanaprabha at a briefing.
Prior to the sale, Thai Air Asia was 55% owned by Thai company Asia Aviation, while the remaining 45% is owned by Air Asia group founded by Malaysian entrepreneur Tony Fernandes.
King Power purchased 39.82% from Asia Aviation’s CEO Tassapol Bijleveld, making it the second largest shareholder in Thai Air Asia. Bijleveld will hold on to 5% of the shares and remain as CEO of Asia Aviation, said King Power in a statement, with the rest of Asia Aviation’s stock owned publicly.
Last year, Thai Air Asia carried 1.48 million passengers and made US$30 million net profit.