Retail Central Board agrees on THB 14.7 billion purchase of Rinascente department stores
Central Retail Corporation (CRC), a leading Thai retail conglomerate, has approved the sale of its Rinascente luxury department store in Italy to Central Group for approximately 14.7 billion baht (around 390 million euros). This sale marks a significant milestone for CRC, as the deal's value is significantly higher than its initial investment in 2018.
The sale of Rinascente is considered a favourable opportunity due to its high valuation. According to CRC's financial reports, the company's assets and profitability ratios for Rinascente surpass those of comparable retail businesses in Europe and other developed economies.
The transaction is expected to generate a post-tax profit of approximately 6 billion baht for CRC. However, it's important to note that this profit will not be used for CRC's 45 billion baht expansion plan for Thailand and Vietnam, nor will it be used to pay down the 5.3 billion baht in debt for the company, as previously mentioned.
Instead, the funds from the Rinascente sale will be used to strengthen CRC's balance sheet and pursue future mergers and acquisitions in Southeast Asia. Panet Mahankanurak, the Chief Financial Officer of CRC, stated that the Rinascente sale aligns with the company's strategy to focus on high-growth markets.
The sale of Rinascente is part of CRC's strategic decision to streamline its portfolio and concentrate on its core markets in Thailand and Vietnam. This decision also means that there will be no further investment in Europe due to its high capital requirement.
CRC has appointed an independent financial advisor to provide an opinion on the fairness of the deal, which will be presented to shareholders for their consideration. The transaction is subject to shareholder approval at a meeting scheduled for 6 November 2025.
In addition, CRC plans to propose a special dividend of 7.7 billion baht, or 1.28 baht per share, to its shareholders. However, it's worth noting that this special dividend will not be funded by the Rinascente sale proceeds.
The Thai conglomerate Harng Central Retail Corporation has the right to take over the Rinascente luxury department store in Italy, with the price of the transaction being 250 million euros. The sale of Rinascente does not involve any additional debt for CRC.
In conclusion, the sale of Rinascente represents a strategic move for CRC, allowing the company to capitalise on a favourable opportunity while focusing on its core markets and pursuing growth in Southeast Asia.
Read also:
- Deepwater Horizon Oil Spill: BP Faces Record-Breaking Settlement - Dubbed 'Largest Environmental Fine Ever Imposed'
- Meta Unveils Ray-Ban AR Display Sunglasses; TikTok Agrees to $200 Million Deal
- Historic downtown temples to receive restoration funds totaling over 25 million pesos
- Cars' Environmental Impact Explained
