Big C Shareholders Approve 35 Billion Baht Takeover of Carrefour
The Big C retail chain has been approved by shareholders to take out a 38 billion baht loan to fund the takeover of Carrefour hyper stores in the country.
The retail giant is confident it will generate 110 billion baht in revenue within the next five years.
At the Big C shareholder meeting yesterday, shareholders representing 732 million shares, which accounted for 97 percent of the total shares, approved the 35 billion baht takeover bid of Carrefour's business operations in Thailand.
The shareholders also green lighted a 38 billion baht loan for the takeover deal and future expansion.
Big C Chief Financial Officer Rampha Kamhomruen also reported to shareholders that the chain is currently generating about 70 billion baht a year and combined with the soon to be acquired Carrefour's business operations, the figure would rise to 110 billion baht per year, which is more than a 40 percent increase.
Rampha added that in the first year after the merger, Big C's share value will increase 5 percent and to 20 percent in the third year, which is when the synergy process will start to yield results.
The takeover deal will allow the Big C chain to cover all customer bases in both Bangkok and the provinces.
The loan will be made through domestic and international financial institutions.
Initially, the loan will have a interest rate estimated at around 4.5 percent or lower, in which the principal will be paid back within five years, due to the company's strong financial support.
Rampha also indicated that there will be no overlapping of Big C and Carrefour branches since they aim for different consumer groups.
It will take 6 months to a year to re brand all Carrefour stores into Big C.
Source: http://www.thailandoutlook.tv/tan/
