Central Retail Corporation Plc (CRC) announced it expects to realize a post-tax profit of approximately 6 billion baht from the sale of Rinascente, its luxury department store chain in Italy, in a deal valued at around 14.7 billion baht.
The company, listed on the SET, revealed that its board approved the transaction on September 17, with Harng Central Department Store (HCDS), a non-listed entity within the Central Group, as the buyer.
CRC stated that this divestment aligns with its strategic goal of portfolio optimization, allowing the company to concentrate on its core growth markets of Thailand and Vietnam. The proceeds will bolster CRC’s financial position, support debt repayment, and fund future investments.
Additionally, CRC announced plans to distribute approximately 7.7 billion baht of the proceeds as a special dividend to shareholders, amounting to 1.28 baht per share.
Chief Financial Officer Panet Mahankanurak emphasized that the move reflects the company’s commitment to focus on markets where it has expertise and sees significant growth potential.
“Thailand and Vietnam are our primary markets, and we will continue investing and expanding in these regions,” he said.
He also noted that the proceeds from the sale would give CRC greater flexibility to explore mergers and acquisitions within Southeast Asia, while investments in Europe are less attractive due to high capital requirements, which could divert resources from the company’s core markets.
“The transaction enables us to realize immediate value rather than waiting for future dividends from Rinascente,” Mr. Panet added.
The deal was valued at a price-to-earnings ratio of 14.4 times and an EV/EBITDA multiple of 7.8 times—higher than comparable European retailers—and aligns with a discounted cash flow valuation conducted with financial advisors.
CRC, which acquired Rinascente in 2018, indicated that the sale price represented a substantial premium over its initial investment. The estimated post-tax profit of 6 billion baht may fluctuate depending on currency exchange rates and Rinascente’s net asset value at the closing of the deal.
For the first half of 2025, Rinascente’s stores posted a net profit of 302 million baht, up approximately 12% year-on-year, according to CRC.
Market analysts responded to the announcement, noting that the transaction might lead to some earnings dilution and a decline in CRC’s net profit.
In the first half of 2025, CRC reported a net profit of 3.48 billion baht, compared to 3.83 billion baht in the same period last year.
On Friday, CRC shares closed at 22.40 baht on the Stock Exchange of Thailand, unchanged from the previous day when the price dropped 9%. Trading volume remained high at 1.51 billion baht.