Central Retail Board Approves Sale of Rinascente for THB 14.7 Billion

Central Retail Corporation (CRC)'s board of directors has officially approved the sale of its Rinascente luxury department store in Italy to its parent company, Central Group, in a deal valued at approximately 14.7 billion baht. 

The move is part of the company's strategic decision to streamline its portfolio and concentrate on its core markets in Thailand and Vietnam.

The board, which included non-interested members, gave its approval on 17 September. 

The transaction is expected to generate a post-tax profit of approximately 6 billion baht for CRC. 

The funds from the sale will be used to bolster the company's financial position, including paying down 5.3 billion baht in debt. CRC also plans to propose a special dividend of 7.7 billion baht, or 1.28 baht per share, to its shareholders.
 

Panet Mahankanurak, Chief Financial Officer of CRC, stated that the decision aligns with the company's previously announced strategy to focus on markets with high growth potential where it has established expertise. 

"We have decided against further investment in Europe, as the high capital requirement would divert funds from our key markets," he said. 

The company plans to use the funds from the sale to strengthen its balance sheet and pursue future mergers and acquisitions in Southeast Asia.

The sale of Rinascente is considered a favourable opportunity, as the deal values the non-strategic asset at a price that is significantly higher than CRC's initial investment in 2018. 

The company's valuation of Rinascente's assets and profitability ratios were higher than those of comparable retail businesses in Europe and other developed economies.

The transaction is subject to shareholder approval at a meeting scheduled for 6 November 2025. CRC has appointed an independent financial advisor to provide an opinion on the fairness of the deal, which will be presented to shareholders for their consideration.