Thailand-based conglomerate Central Group, through its subsidiary, has taken the control of the Vietnamese electronics retailer Nguyen Kim.

A Nguyen Kim electronic retail store in HCM City. The firm has been acquired
by Thailand's conglomerate Central Group. (Photo: cafef.vn)

The deal was revealed after the group’s sub-unit, Central Retail Corporation Public Company Limited (CRC), publicised its third-quarter financial statement following the latter’s IPO on Thailand’s stock exchange on February 20.

Central Group on June 7, 2019 obtained control of NKT New Solution and Technology Development Investment JSC and its subsidiaries by “additionally acquiring 51 percent of the total issued shares” to raise its ownership from 49 percent to 100 percent through an indirect subsidiary, CRC said in its financial statement.

The value of the deal was nearly 3.56 billion THB or 2.66 trillion VND (115 million USD), the company said, adding 86.6 percent of the funding came in cash and the remainder was “recorded under other non-current liabilities.”

NKT New Solution and Technology Development Investment JSC is the operator of electronics store chain Nguyen Kim.

The company, which was founded in 2014 with 800 billion VND worth of charter capital, runs more than 70 stores nationwide.

The deal allowed CRC to increase its equity interest in the Vietnamese business and its subsidiaries, including electronic retail store chain Nguyen Kim, to 81.53 percent from 39.95 percent, CRC said.

The Thai retail giant in 2015 bought 49 percent of capital in Nguyen Kim through its electronic unit Power Buy. The value of the deal was reported at 200 million USD.

Between June 7 and September 30, 2019, NKT New Solution and Technology Development Investment JSC and its subsidiaries contributed 4.45 billion THB or 3.27 trillion VND and 58 million THB or 42.6 billion VND to Central Group’s Q3 revenue and profit.

Before acquiring Nguyen Kim, Central Group bought out supermarket chain Big C Vietnam from the France-based Casino Group for 1 billion USD in 2016.

Central Group’s Vietnamese branch is operating a total of 32 shopping centres and 215 retail stores in the country.