"The major shareholding in Fajar will allow SCG to enhance its ASEAN growth, especially in Indonesia," chief executive Roongrote Rangsiyopash, said referring to the Association of Southeast Asian Nations.

SCG's packaging business profits of 1.68 billion baht, made up 14.4% of the company's profit in the three months ending in March.

Financing will come from internal sources, Roongrote said, adding that the transaction is expected to be completed in the third quarter of this year, after which SCG will make a mandatory tender offer.

(Reporting by Chayut Setboonsarng, editing by Louise Heavens)