Big C gains 10% on takeover deal
Play
Big C Supercentre has witnessed an increase in share price today, after Casino Group announced that it would sell the 59 per cent stake to TCC Corp.
At 3.53pm, it was traded at Bt249, an increase of Bt22 or 9.69 per cent.
Casino said in a statement that TCC Corp would buy the stake at 3.1 billion euro or approximately Bt123 billion. The shares are valued at Bt252.88 per share, a 28 per cent premium to the share price on January 14, 2016.
TCC now holds a 74 per cent stake in Berli Jucker (BJC) which operates convenience stores under "B'Smart" brand. It also owns Metro, a wholesale chain in Vietnam.
According to Asset Plus Securities, the acquisition further extends TCC's business which covers goods manufacturing to distribution.
"It remains difficult for Big C to expect business synergy in the short term, as TCC has no experience in retailing business," the house said. Moreover, Tesco Lotus may also take this opportunity to launch a new marketing campaign.
"Yet, Big C could win through TCC's network in CLMV markets, especially Vietnam," it said, adding that Big C could be used to take over the stake in Big C Vietnam which is also held by Casino Group.
