|Thailand's Central Group has acquired 49 per cent of stake of Nguyen Kim electronic store chain. – Photo Nguyenkim.com
HA NOI (VNS) — Power Buy has acquired a 49 per cent stake in NTK New Solution and Technology Development Investment Joint Stock Co, which owns Nguyen Kim, a major Vietnamese electronics mall.
In its filing with the Stock Exchange of Thailand, Power Buy, a leading electronics store operator in Thailand, said it had completed the strategic investment in the Vietnamese partner. After the transaction, Power Buy will hold 49 per cent of the stake in NKT, while the existing shareholders will hold 51 per cent.
"The acquisition of shares by Power Buy in NKT will form a partnership between the company and Nguyen Kim Trading Co, which will allow Power Buy to expand its electronics retailing operations in Viet Nam," the filed paperwork declared.
However, the value of the deal has not been disclosed.
NTK is the ultimate 100 per cent shareholder of Nguyen Kim Trading Joint Stock Co, which operates 21 electronics retail stores across Viet Nam.
According to Power Buy, Nguyen Kim has a strong position in Viet Nam's electronics retail market, as well as positive financial capacity, with total sales of more than VND8.4 trillion (US$393 million) and a net profit of VND352 billion ($16.4 million) for the financial year ending March 31, 2014.
Power Buy is a unit of the Central Retail Corporation, the retail arm of Central Group, which is owned by the Chirathivat family, the second wealthiest family in Thailand. Power Buy operates 80 stores across Thailand.
In Viet Nam, Central Group is also known by its series of Robins shopping malls in Ha Noi and HCM City.
Central Group Viet Nam's media representative said its CEO, Philippe Broianigo, would hold the same position at Nguyen Kim, while Nguyen Kim's current chairman of the board of directors, Nguyen Van Kim, would retain his position in the company.
The deal does not come as a surprise since Nguyen Kim had previously revealed its interest in getting a foreign partner for the 2011-15 period.
The Vietnamese electronics retailer has been valued at $200 million, according to Forbes Viet Nam in its January 2015 issue.
There has been an increase in the number of private Vietnamese businesses selling the majority of their stakes to foreign partners, seeking financial support and modern corporate management policies. This is expected to create renewed momentum for development on the back of fierce competition in the domestic market. — VNS