Thailand’s Central Retail has decided to sell electronics retail chain Nguyen Kim to rival chain Pico for THB1.1 billion (US$36 million).
The deal is expected to cause a loss of THB5.9 billion ($187 million), Central Retail said in its disclosure Tuesday to the Stock Exchange of Thailand.
Customers queue outside a Nguyen Kim store. Photo courtesy of Nguyen Kim |
But its financial position “remains strong” and the loss would not have a significant impact on its business operations, it said.
The divestment from Nguyen Kim is part of its strategy to optimize its investment portfolio in Vietnam, it added.
Central Retail first acquired a 49% stake in Nguyen Kim in 2015 before buying it out in 2019.
Nguyen Kim was founded in 2001, and sells a range of household electronics products such as refrigerators, washing machines and TVs.
In the first nine months of 2024 its 49 stores reported sales were down 17% year-on-year to VND3.45 trillion.
Pico, established in 2007, operates in many localities around the country, and has seven large stores in Hanoi alone.
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