Central Retail Corporation to divest Italian department store business for €250m

Core Viewpoint - Central Retail Corporation (CRC) has agreed to sell its Italian department store business, Rinascente, to its principal shareholder, Harng Central Department Store (HCDS), for €250 million (approximately Bt9.38 billion) [1] Financial Details - The deal includes the complete transfer of shares in CRC Holland, which operates Rinascente, and the settlement of a shareholder loan amounting to around €141 million ($165.8 million) as of 30 June 2025 [2] - CRC expects to secure net cash proceeds of approximately Bt13 billion, post-tax, from the deal [2] Use of Proceeds - Approximately Bt5.29 billion from the loan repayment will be used to reduce institutional debt, enhancing CRC's financial stability [2] - The remaining Bt7.7 billion from the asset sale may be distributed as a special dividend to shareholders, projected at Bt1.28 per share [3] Strategic Shift - This transaction aligns with CRC's strategic pivot towards markets with greater growth potential, such as Thailand and Vietnam, as growth prospects in Italy and other parts of Europe are currently subdued [3] - HCDS plans to merge Rinascente with its other European department store holdings, streamlining them under unified management [3] Governance and Advisory - The transaction is classified as both a connected transaction and an asset disposal by CRC [4] - An extraordinary general meeting of CRC's shareholders is scheduled for 6 November 2025 to vote on the proposed sale [4] - Avantgarde Capital has been appointed as an independent financial adviser to provide an opinion on the transaction for shareholders [4]