CRC to sell Rinascente to Central Group

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CRC to sell Rinascente to Central Group
Deal estimated at 14.7 billion baht

PUBLISHED : 22 Sep 2025 at 05:03

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The Rinascente department store in Rome. Mr Panet says after the sale to Central Group, CRC will continue to benefit from business collaboration as before.

The board of Central Retail Corporation Plc (CRC) has approved the sale of Rinascente in Italy to Harng Central Department Store Co Ltd, part of Central Group and its major shareholder, for 14.7 billion baht.Panet Mahankanurak, chief financial officer of CRC, said the decision to divest the business in Italy aligns with its strategy to rebalance its portfolio, shifting focus to expansion in its core markets of Thailand and Vietnam where the company has strong expertise and high growth potential.
CRC plans to continue investing in these markets, using proceeds from the sale to strengthen its financial position and pursue mergers and acquisitions (M&A), reinforcing its presence in Southeast Asia, said Mr Panet.
While the company previously evaluated several opportunities to expand its investments in Europe, he said the significant capital requirements of such initiatives and the potential diversion of funds from the core markets of Thailand and Vietnam led to the decision not to proceed.
The offer from Central Group to acquire Rinascente represents a timely opportunity for CRC to divest a non-strategic operating asset at a compelling valuation, said Mr Panet.
This offer is valued at roughly 14.7 billion baht, providing CRC with capital to drive strategic growth and strengthen its financial position, he said.
Mr Panet said CRC will realise a sales price significantly higher than its original investment cost in 2018, generating an estimated post-tax profit of roughly 6 billion baht, with the final profit depending on the exchange rate and Rinascente’s net assets at the time of transaction completion.
The sale strengthens CRC’s financial position by using cash proceeds to repay borrowings from financial institutions, reducing the company’s debt burden by about 5.3 billion baht.
He said the sale also helps reduce CRC’s risks in complying with laws and regulations in Italy, which differ significantly from those in Southeast Asia. The sale lowers the proportion of CRC’s revenue subject to a higher effective tax rate of around 30%, compared with CRC’s current effective tax rate of roughly 23%.
After this transaction, CRC will continue to benefit from business collaboration with Rinascente as before, said Mr Panet.
This transaction will enable CRC to distribute dividends of up to 7.7 billion baht, equivalent to 1.28 baht per share, he said.
These amounts are part of an initial plan and remain subject to approval by the board of directors and/or shareholders after CRC receives the net cash proceeds from this transaction. Mr Panet said the transaction must be presented to shareholders for approval on Nov 6. CRC also appointed an independent financial advisor to provide an independent opinion on the transaction and its fairness, submitted to shareholders as supporting information for their consideration.

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