At the end of the morning session on Thursday, the share price of Central Retail Corporation Public Company Limited (SET: CRC) plummeted by 8.13% or THB 2.00 to THB 22.60, with a trading value of THB 1.46 billion.
The decline in share price followed news of CRC’s sale of its Italian department store Rinascente, prompting investor concerns about a potential decrease in the company’s revenue.
CRC has agreed to sell its entire stake in the Italian department store Rinascente to its major shareholder, Harng Central Department Store (HCDS), in a transaction valued at €391 million (approximately THB 14.7 billion). The move underscores CRC’s intent to prioritize expansion in the faster-growing Southeast Asian markets, notably Thailand and Vietnam.
According to a filing with the Stock Exchange of Thailand (SET), the deal will see HCDS acquire 100% of CRC Holland B.V.—Rinascente’s holding entity—for €250 million (THB 9.4 billion) and assume outstanding shareholder loans of €141 million (THB 5.3 billion) that CRC had previously extended. The transaction is pending shareholder approval at an extraordinary general meeting scheduled for November 6, 2025, after which CRC expects to receive net proceeds of about THB 13 billion post-tax.
CRC plans to allocate around THB 5.3 billion from the proceeds to repay debt, while the remaining THB 7.7 billion is set aside for special dividends to shareholders. The company intends to distribute these dividends in two tranches—THB 4.2 billion after the deal is completed and another THB 3.5 billion along with the final dividend—offering a total payout of approximately THB 1.28 per share, or a combined yield of 5.2%.
Finansia Syrus Securities (FSS) views this transaction as having a negative sentiment for CRC in the short term, primarily because the deal’s valuation multiples are lower than CRC’s—Rinascente is estimated to be valued at a trailing P/E of 9–11x, compared to CRC’s 17–18.8x (based on 2024–2025 forecasts).
Post-sale, CRC’s earnings could decline by an estimated 9–11% for 2026–2027, and profit growth in 2026 could stagnate. If Rinascente’s net profit of approximately THB 931 million (net of debt repayment effects) is lost, this downside risk will weigh on future results.
On the positive side, the divestment reduces CRC’s direct exposure to the low-growth European retail sector and provides an immediate, substantial dividend payout to shareholders.
With CRC shares already trading at their 2025 target price and valuations in line with peers, combined with the anticipated negative sentiment from this transaction, FSS recommends delaying new investment in CRC for the time being.
CGS International Securities (Thailand) (CGSI) highlighted that, on a pro forma basis, the sale will lower CRC’s total assets from THB 291 billion to THB 261 billion, with liabilities falling significantly and net debt—including leases—reduced by around THB 20 billion.
However, the transaction also removes Rinascente’s contributions, assuming the removal of Rinascente, 2024 revenue would decline by 7% and net profit attributable to owners to decrease by 11% (from THB 8.1 billion to THB 7.2 billion). EBITDA margin is expected to ease from 13.1% to 12.2%, and ROE from 12.1% to 10.9%. The sale price equates to about 9x FY24 P/E and just 3–4x EV/EBITDA—well below both CRC’s own trading multiples and international retail benchmarks.
Though CRC maintains that the divestment allows it to direct capital and management attention to higher-growth markets in Southeast Asia, particularly Thailand and Vietnam, CGSI adopts a cautious view, pointing out that CRC’s balance sheet was already solid, with leverage under control before the sale.
Rinascente, noted as a profitable and cash-generating business (THB 4–5 billion EBITDA and roughly THB 1 billion in net profit per year), is being sold at a discount, which may detract from CRC’s long-term value creation. With transaction proceeds largely earmarked for debt repayment and special dividends instead of reinvestment in growth, CGSI views the deal as prioritizing short-term shareholder returns at the expense of future earnings sustainability.
Meanwhile, Kasikorn Securities (KS) views the transaction favorably, maintaining an ‘Outperform’ rating on CRC. The analyst highlighted CRC’s strategic rationale to exit mature, low-growth European department stores and concentrate efforts on high-growth markets in Southeast Asia, including Thailand, Vietnam, and Indonesia.
This move is expected to strengthen the balance sheet by reducing debt and cutting financing costs. KS notes that Rinascente only contributed EUR 6–8 million in net profit from 2022 to 2024, equating to around 2–3% of CRC’s 2024 bottom line, so the earnings impact is limited. ROE is projected to rise from 10.9% to 11.1%, with net interest-bearing liabilities decreasing and liquidity improving.
For shareholders, the deal delivers special dividends of up to THB 7.7 billion (about THB 1.28 per share) over 2025–26, representing a 2025 dividend yield of roughly 7.6%, including an additional 5.2% from the extra payout. Net debt-to-equity is also expected to improve, dropping to 1.1x from 1.2x.
