In its latest financial statement, Thailand's Central Group has announced spending VND2.66 trillion ($115.65 million) to complete the acquisition of Nguyen Kim, after five years of holding a 49 per cent stake in the electronics retailer.
|Nguyen Kim electronics chain officially belongs to Central Group. Photo: zing.vn |
The deal was revealed when Central Retail Corp. (CRC), a subsidiary of Central Group, completed its IPO on the Stock Exchange of Thailand on February 20. Accordingly, Central Retail has obtained control of NKT New Solution and Technology Development Investment JSC and its subsidiaries, which operate the Nguyen Kim electronics retail chain in Vietnam.
In June 2019, Central Retail acquired the remaining 51 per cent of the total issued shares in Nguyen Kim through an indirect subsidiary, for a total consideration of around VND2.66 trillion ($115.65 million). As a result, the group’s equity interest in NKT New Solution and Technology Development Investment JSC and its subsidiaries increased from 39.95 to 81.53 per cent.
NKT was set up in 2014 with the charter capital of VND800 billion ($34.49 million), with founder Nguyen Van Kim and his family members holding 90 per cent of the parent company. In 2015, Power Buy, a company under Central Group, has purchased half of NKT.
According to the business registration certificate updated in June, Power Buy now holds a 96 per cent stake in NKT. Jariya Chirathivat is the legal representative cum general director of NKT and Nguyen Kim. She is a member of the Chirathivat family, the founders and current managers of Central Group.
Since the date of acquisition to September 30, 2019, NKT New Solution and Technology Development Investment JSC and its subsidiaries contributed THB4.56 trillion ($143.39 million) to the group's revenue and THB58 million ($0.82 million) to its profit.
With the complete takeover, the Nguyen Kim electronics chain officially belongs to the Thai investor, leaving the hands of the founding original owners after 24 years of development with 70 outlets. Hence, Nguyen Kim became the only foreign player competing with local electronics retailers such as Dien May Xanh, Dien May Cho Lon, Pico, and Media Mart.