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Thai subway firm Bangkok Metro to merge with Bangkok Expressway

[BANGKOK] Thailand's subway operator Bangkok Metro PCL said on Wednesday it would merge with the country's leading tollway operator Bangkok Expressway PCL in a share swap deal to create a new entity with an estimated market value of 78.4 billion baht (S$3.2 billion).

The planned merger is part of its drive to expand and invest in infrastructure projects both domestic and overseas to prepare for the creation of the Southeast Asia single market in late 2015, it said in a statement.

Under the share-swap deal, Bangkok Metro shareholders will swap one existing share for 0.42050530 shares of the new entity, while Bangkok Expressway shareholders can swap in a ratio of one existing share for 8.65537841 shares of new entity, it said.

Southeast Asian governments are planning to invest more in several infrastructure projects, which provide an opportunity for the company to expand its business in the region, the Thai company said.

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Bangkok Metro is due to hold a news conference about its business plan on Thursday.