Thai cash-and-carry chain Siam Makro Pcl plans to invest up to 9 billion baht ($258 million) this year to open stores at home and overseas, Chief Financial Officer Saowaluck Thitaphant said on Wednesday.
Its parent CP All Pcl, Thailand’s largest convenience store chain, plans to reduce its 97 percent stake in Siam Makro and said on Wednesday it had appointed Siam Commercial Bank as financial advisor for the public share sale.
It did not disclose the size of the stake for sale but Umroong Sanphasitwong, director of CP All, said the parent aims to retain ownership of more than 50 percent. The timing of the sale would depend on market conditions but the shares would be offered at not less than 42 baht a share, Umroong told reporters, well above Siam Makro‘s share price of 34 baht on Wednesday.
Siam Makro, whose main customers are hotels, restaurants and small convenience stores, plans to spend 6 billion baht to open 20 stores in Thailand this year, and spend 3 billion baht to expand elsewhere in Southeast Asian, possibly in Cambodia, Laos and Vietnam, Saowaluck told reporters.
It is also interested in investing in India, but will hold off about opening a store in Myanmar until the political climate is clearer following recent elections in the country, she added.
Siam Makro expects revenue to rise by less than 10 percent this year but would be helped by new stores and the government’s stimulus measures, which are offsetting the impact from weak domestic consumption, Saowaluck said. Profit growth will be lower than revenue growth, she said.
CP All, controlled by billionaire Dhanin Chearavanont’s Charoen Pokphand Group, operates 7-Eleven stores in Thailand. It has said it will use the proceeds to repay debt and share sale will increase the number of tradable shares in the market.
The retailer saw its debt rise after the $6.6 billion acquisition of Siam Makro in 2013.