Central Retail announced it signed a share purchase agreement with Pico Holdings Joint Stock Company to divest its entire investment in NKT New Technology Development and Solutions Investment Company and its subsidiaries, the parent company of the Nguyen Kim electronics retail chain. The announcement was made in a report submitted to the Stock Exchange of Thailand on 23/12/2024.

The deal is valued at 1,137 billion baht (approximately 36 million USD), equivalent to over 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 USD, in Quarter IV.

Despite this, the leading Thai retail group affirmed its "strong financial position," stating that the loss will not significantly impact Central Retail's business operations, assets, or dividend payments.

A Nguyen Kim electronics supermarket. Photo: Nguyen Kim

According to Central Retail, the divestment from the Nguyen Kim electronics chain aligns with its strategy to optimize its investment portfolio in Vietnam. The Thai giant initially acquired 49% of Nguyen Kim in early 2019. Approximately five years later, it purchased the remaining 51% stake in the Vietnamese enterprise.

Nguyen Kim was established in 2001 and was once a leading electronics retail chain in Vietnam. In the first nine months of last year, the supermarket chain, with 49 stores, contributed over 3.450 billion VND in revenue to Central Retail, a 17% decrease compared to the same period in 2023.

Moving forward, the Thai retail giant will reallocate resources in the Vietnamese market to enhance operational efficiency. It will also accelerate expansion and increase profitability in its two core business sectors: food and real estate. Central Group is controlled by the Thai billionaire Chirathivat family.

Meanwhile, Pico, the acquirer of Nguyen Kim, is also a reputable electronics distribution chain in the domestic market, established in 2007. The company currently operates in various localities, including seven major establishments in Hanoi.

Anh Tu