Central Group sells Big C Thailand stake to rival
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Thailand’s Central Group is a step nearer to settling on Big C Vietnam after selling its stake in Big C Thailand to a rival retailer.
Central has accepted an offer from rival TCC Group for its 25 per cent holding of Big C Supercenter, reported to be worth at least 50 billion baht (US$1.4 billion).
The deal follows French retail group Casino’s decision to sell its Thailand and Vietnam units this year in a bid to cut debt. Both businesses have hypermarkets, supermarkets and convenience stores.
Central Group, Thailand’s biggest retailer led by tycoon Tos Chirathivat, lost out to TCC’s flagship retail unit Berli Jucker in the battle to gain control of the Thai unit, but has agreed to pay 920 million euros (US$1.1 billion) for Big C Vietnam.
Questions & Answers
Q.Why did Central Group sell its stake in Big C Thailand?
Why did Central Group sell its stake in Big C Thailand?
Central Group sold its 25 per cent holding in Big C Thailand to rival TCC Group. This sale was part of Central's strategy to move closer to acquiring Big C Vietnam, following French retail group Casino's decision to divest its Asian units.
Q.How much did Central Group receive for its stake in Big C Thailand?
How much did Central Group receive for its stake in Big C Thailand?
Central Group accepted an offer from TCC Group for its 25 per cent holding in Big C Supercenter. The reported value of this transaction was at least 50 billion baht, which converts to US$1.4 billion.
Q.What was the reason behind French retail group Casino's decision to sell Big C Thailand and Vietnam?
What was the reason behind French retail group Casino's decision to sell Big C Thailand and Vietnam?
French retail group Casino decided to sell its Thailand and Vietnam units this year. This move was made by the company in an effort to reduce its overall debt burden.
Q.Did Central Group succeed in acquiring Big C Thailand?
Did Central Group succeed in acquiring Big C Thailand?
No, Central Group did not succeed in acquiring Big C Thailand. Its flagship retail unit Berli Jucker lost out to TCC in the bidding battle for control of the Thai unit.