Thai group purchases share to secure foothold in Vietnam's retail market.
Power Buy, a company under Thailand’s Central Group, has purchased half of the Nguyen Kim Technology Joint Stock Company, which owns a technology supermarket chain in Vietnam.
According to a report released by Thailand’s stock exchange, Power Buy has completed its purchase of 49 per cent of Nguyen Kim Technology. A representative from the Central Group said the deal will help Nguyen Kim to expand its retail network in Vietnam and take advantage of both companies’ strengths in the retail sector.
Declining to reveal the value of the acquisition, the representative said that it is part of a plan aiming to attract foreign partners to Nguyen Kim. He added that Mr. Philippe Broianigo, General Director of the Central Group, will take up the same position at Nguyen Kim while Mr. Nguyen Van Kim will remain Chairman of the Board. Nguyen Kim, meanwhile, made no comment on the deal.
Established in 2001, Nguyen Kim Technology Joint Stock Company now has 21 technology supermarkets throughout Vietnam and is one of the country’s leading retailers. Its sales figures stood at VND8.400 billion (nearly $500 million) at the end of FY 2014, with a net profit of VND352 billion ($17 million).
Power Buy, which owns more than 80 large retail outlets, is one of the leading technology companies in Thailand. The company is managed by the wealthy Chirathivat family, which owns a number of Robins commercial centers in Hanoi and Ho Chi Minh City.
Many Thai billionaires have recently penetrated into Vietnam’s retail sector, considering it to be a market of some promise. The Berli Jucker Corporation (BJC) had intended to acquire Metro Vietnam, but hit a stumbling block when TCC Holding, its largest shareholder, opposed the plan.