Korean, Singaporean investors also want to buy Big C Vietnam
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The analysts said that the auction is a unique opportunity for foreign corporations to pour capital into the two retail markets of the highest profit in Southeast Asia.
Both the two new potential investors are appreciated for financial strength. Dairy Farm Group is the 2nd largest retailer in Singapore and Hong Kong, which owns a series brands like 7-Eleven, Cold Storage, Guardian, Wellcome Giant, Hero … Its revenue in 2014 is about $13 billion.
Meanwhile, Lotte Shopping is Korea’s largest mall chain with turnover of $23 billion and $509 million of profit in 2014.
Another source said that Japanese retail group Aeon Co Ltd is also considering to join the race.
Earlier, the two retail giants of Thailand – Berli Jucker and Central Group – said they wanted to buy the property.
Central Group, the largest retailer of Thailand, owned by billionaire Tos Chirathivat is said to have upper advantage because it holds a 25% stake of Big C Thailand.
This group wants to buy an additional 58.6% of shares, equivalent to $3.1 billion. In addition, Central Group also expects to pay from $800 million to $1 billion to own the whole Big C Vietnam system.
Questions & Answers
Q.Which companies have expressed interest in acquiring Big C Vietnam?
Which companies have expressed interest in acquiring Big C Vietnam?
Potential investors include Dairy Farm Group from Singapore and Lotte Shopping from Korea. Japanese retail group Aeon Co Ltd is also considering joining, alongside Thai giants Berli Jucker and Central Group.
Q.What is Central Group's current involvement with Big C properties?
What is Central Group's current involvement with Big C properties?
Central Group already holds a 25% stake in Big C Thailand. They aim to acquire an additional 58.6% of shares in Big C Thailand, valued at $3.1 billion.
Q.How much is Central Group prepared to pay for Big C Vietnam?
How much is Central Group prepared to pay for Big C Vietnam?
Central Group expects to pay between $800 million and $1 billion to acquire the entire Big C Vietnam system. This is in addition to their proposed investment in Big C Thailand.
Q.Why are these retail markets considered attractive to foreign investors?
Why are these retail markets considered attractive to foreign investors?
Analysts suggest that the auction represents a unique chance for foreign corporations. It allows them to invest capital in two Southeast Asian retail markets known for generating the highest profits.
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