Thai retail giant transfers Nguyen Kim electronics chain

According to a report sent to the Thai Stock Exchange on December 23, Central Retail said it had signed a share purchase contract with Pico Holdings Joint Stock Company to liquidate the entire investment in NKT New Solutions and Technology Development Investment Company, along with its subsidiaries. This is the parent company of Nguyen Kim electronics retail chain.

This deal is worth 1,137 billion baht (about 36 million USD), more than 950 billion VND. Central Retail expects to record a one-time (non-cash) impairment loss of approximately 5.9 billion baht or $186.7 million in the fourth quarter.

However, Thailand’s leading retail group affirmed that its “financial situation is still strong” and that this loss will not have a major impact on Central Retail’s business operations, assets, or dividend payments.

According to Central Retail, the divestment from the Nguyen Kim electronics chain is part of the strategy to optimize the investment portfolio in Vietnam. Previously, the Thai tycoon bought 49% of Nguyen Kim since the beginning of 2019. About 5 years later, the Thai tycoon bought the remaining 51% of the Vietnamese enterprise’s shares.

Nguyen Kim was founded in 2001 and used to be the leading electronics retail chain in Vietnam. In the first 9 months of last year, this supermarket chain with 49 stores contributed more than VND 3,450 billion in revenue to Central Retail, down 17% compared to the same period in 2023.

In the coming time, in the Vietnamese market, the Thai retail giant will focus on reallocating resources to increase operational efficiency. They also accelerated expansion and raised profits in two core businesses – food and real estate. Central Group is run by the Thai billionaire Chirathivat family.

Meanwhile, Pico – the unit that acquired Nguyen Kim – is also one of the reputable electronics equipment distribution chains in the domestic market, established in 2007. Currently, the business operates in many localities, including 7 large facilities in Hanoi.