Billionaire Chirathivat family to acquire Italian retail giant Rinascente for approximately $296 million from Central Retail.
In a significant move, Central Retail Corp., a subsidiary of the Central Group, has proposed to sell the Italian department store chain Rinascente for €250 million ($296 million). The transaction, which is subject to shareholder approval in November, comes as the Chirathivat family, one of Thailand's wealthiest, seeks to consolidate its retail operations.
Tos Chirathivat, the grandson of Central Group's founder, Tiang Chirathivat, leads the family-owned conglomerate. The Chirathivat family, with a net worth of $8.6 billion, ranked No. 5 in Forbes Asia's list of Thailand's 50 Richest in July this year.
Central Group has no current plans to expand its department store businesses in Europe beyond the consolidation of Rinascente and its existing European operations. Instead, the company is focusing on expanding its retail operations in its home market in Thailand and in Vietnam. Central Retail expects to use the €13 billion baht ($408 million) from the sale to repay loans and pay dividends.
Central Retail Corp. currently operates 40 luxury stores across seven countries, including Selfridges (U.K.), Arnott (Ireland), KaDeWe (Germany), De Bijenkorf (Netherlands), and Globus (Switzerland). Rinascente, on the other hand, operates nine outlets across Italy, with flagship stores in Milan and Rome.
As part of the deal, Harng Central Department Store (HCDS), the largest shareholder of Central Retail, will repay a 141-million-euro debt to Central Retail. HCDS also intends to consolidate Rinascente department store business and department store businesses in Europe under its management.
In a separate development, shares of Central Retail dropped 8.9% in Bangkok trading following the announcement of the proposed sale. However, the company has not announced any new plans to sell other assets or businesses.
Central Group plans to invest 47 billion baht to expand and upgrade its stores in Thailand and Vietnam. This move is expected to strengthen Central Retail's position in the Southeast Asian market, where it already has a strong presence.
The exact date of the shareholders' meeting to approve the takeover of the Italian department store chain Rinascente by the Chirathivat family is July 4, 2024. The transaction, if approved, will mark a significant step in the Chirathivat family's strategic repositioning of their retail business.
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