Big C plans Bt4 bn private placement
Big C Supercenter yesterday announced that it would raise about Bt4 billion in capital via a private placement to fund its business expansion this year, especially the roll-out of small-format stores.
“This fund-raising is a significant step for the company to move forward. Under our business plan announced in October, we aim to expand our business into all store formats,” said Kudatara Nagaviroj, Big C’s director of corporate affairs.
The company aims to become the No 1 modern food retailer in Thailand and a major player in the region. The expansion plan includes the opening of four Big C Super-centers, six Big C Markets and 75 Mini Big Cs nationwide.
The roll-out of small-format stores will be partly through the recently announced partnership with Bangchak Petroleum, which provides the potential for 300 Mini Big C openings at Bangchak filling stations over the next five years, Kudatara said.
Big C’s board of directors has approved a private placement of up to 23.6 million shares, representing 2.9 per cent of its existing share |capital.
As a result, the company decided to postpone the rights offering announced last October, which it does not envisage implementing in the short term and intends to reconsider at an appropriate time.
In addition to involving a short timetable and allowing for a quick-to-market fund-raising regime, it will also increase the free float by 10-15 per cent. The amount raised will limit the dilution effect on existing shareholders, Kudatara said.
The company expects total revenue, which is a combination of sales and rental income, this year to grow by 8-10 per cent.
Kudatara said the private placement was subject to the approval of the annual general meeting of shareholders scheduled for April 30. The private placement is expected to be completed by the end of the second quarter.
“The amount raised will be about Bt4 billion based on Big C share’s current share price,” |he said, adding that the actual amount would be subject to a book-building by Credit Suisse, which was appointed as financial adviser.
Yves Braibant, president and chief executive officer of Big C, said: “This transaction is a continuation of the goal we set in 2011.
“We believe that this is the right time to engage in the private placement to allow us to maximise our reach to consumers nationwide.
“The private placement will allow Big C to achieve greater financial flexibility to roll out its 2012 expansion plan and to continue to deliver long-term shareholder value.”
