Charoen said to also compete for Big C in Thailand, Vietnam
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Some of Thailand’s richest families are preparing to compete for the Southeast Asian operations of French supermarket operator Casino Guichard-Perrachon SA, according to people with knowledge of the matter.
Billionaire Charoen Sirivadhanabhakdi’s TCC Holding Co and the Chirathivat family’s Central Group are weighing first-round bids for the Big C Supercenter chains in Thailand and Vietnam, which are due Feb 5, the people said.
The companies have been speaking with banks about advisory roles and financing options, according to the people, who asked not to be named as the process is private.
Casino’s controlling stake in Bangkok-listed unit Big C Supercenter Plc could fetch more than $3 billion (108.4 billion baht), while a sale of its Vietnam business could raise as much as $800 million, the people said. The Vietnamese operations have also drawn interest from Tokyo-based retailer Aeon Co, two of the people said.
A deal would add to the $54.9-billion of acquisitions in Southeast Asia over the past 12 months, data compiled by Bloomberg show. The proposed disposals are part of Casino’s plan to cut debt by more than €4 billion ($4.3 billion) this year, after its share price slumped more than 50% in the past 12 months.
Casino may sell its businesses in the two countries together or separately, depending on the offers it receives, the people said. The French company owns 58.6% of SET-listed Big C Supercenter.
“The conglomerate acquired control of Singapore food and beverage maker Fraser & Neave Ltd in 2013.”
A person who answered the phone at Mr Charoen’s office in Bangkok said he wasn’t available for comment. Spokesmen for Aeon and Big C Supercenter declined to comment, while representatives for Casino, Central Group and TCC didn’t answer phone calls seeking comment. An investor-relations official for Berli Jucker Plc, the Bangkok-listed consumer goods distributor controlled by TCC, also didn’t answer a phone call seeking comment.
Central Group is among Thailand’s biggest conglomerates, employing over 70,000 people in businesses from retail to real estate, according to its website. It bought Italian luxury department store La Rinascente in 2011 and Danish department store Illum in 2013.
TCC, led by Thailand’s richest man, agreed last year to buy Metro AG’s Cash & Carry wholesale business in Vietnam for €655 million. The conglomerate acquired control of Singapore food and beverage maker Fraser & Neave Ltd in 2013.
Big C Supercenter, founded by the Chirathivat family, opened its first store in Bangkok in 1994, according to its website. Casino took control of the Thai-listed company five years later.
Shares of Big C Supercenter have gained 15% this year, giving it a market value of 191.4 billion baht ($5.3 billion). The company has 580 stores in Thailand at the end of March 2014, ranging from hypermarkets to convenience stores, according to its website.
Questions & Answers
Q.Which companies are reportedly interested in acquiring Big C Supercenter chains in Thailand and Vietnam?
Which companies are reportedly interested in acquiring Big C Supercenter chains in Thailand and Vietnam?
Billionaire Charoen Sirivadhanabhakdi’s TCC Holding Co and the Chirathivat family’s Central Group are weighing bids for the chains in Thailand and Vietnam. Tokyo-based retailer Aeon Co has also shown interest in the Vietnamese operations.
Q.What is the primary reason for Casino Guichard-Perrachon SA selling its Southeast Asian operations?
What is the primary reason for Casino Guichard-Perrachon SA selling its Southeast Asian operations?
The proposed disposals are part of Casino’s plan to reduce its debt. The company aims to cut more than €4 billion this year, following a significant slump in its share price over the past 12 months.
Q.When are the first-round bids for Big C Supercenter in Thailand and Vietnam due?
When are the first-round bids for Big C Supercenter in Thailand and Vietnam due?
The first-round bids for the Big C Supercenter chains in Thailand and Vietnam are scheduled to be submitted by February 5. Companies involved are currently speaking with banks about advisory and financing roles.
Q.What is the estimated value of the Big C Supercenter operations being sold?
What is the estimated value of the Big C Supercenter operations being sold?
Casino’s controlling stake in Big C Supercenter Plc in Thailand could fetch over $3 billion (108.4 billion baht). The sale of its Vietnam business is estimated to raise as much as $800 million.
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