Big C Shareholders Approve 35 Billion Baht Takeover Of Carrefour

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Big C Shareholders Approve 35 Billion Baht Takeover of Carrefour

The Big C retail chain has been approved by shareholders to take out a 38 billion baht loan to fund the takeover of Carrefour hyper stores in the country.

The retail giant is confident it will generate 110 billion baht in revenue within the next five years.

At the Big C shareholder meeting yesterday, shareholders representing 732 million shares, which accounted for 97 percent of the total shares, approved the 35 billion baht takeover bid of Carrefour's business operations in Thailand.

The shareholders also green lighted a 38 billion baht loan for the takeover deal and future expansion.

Big C Chief Financial Officer Rampha Kamhomruen also reported to shareholders that the chain is currently generating about 70 billion baht a year and combined with the soon to be acquired Carrefour's business operations, the figure would rise to 110 billion baht per year, which is more than a 40 percent increase.

Rampha added that in the first year after the merger, Big C's share value will increase 5 percent and to 20 percent in the third year, which is when the synergy process will start to yield results.

The takeover deal will allow the Big C chain to cover all customer bases in both Bangkok and the provinces.

The loan will be made through domestic and international financial institutions.

Initially, the loan will have a interest rate estimated at around 4.5 percent or lower, in which the principal will be paid back within five years, due to the company's strong financial support.

Rampha also indicated that there will be no overlapping of Big C and Carrefour branches since they aim for different consumer groups.

It will take 6 months to a year to re brand all Carrefour stores into Big C.

-- Tan Network 2011-01-06

[madox66]

"there will be no overlapping of BIG C and carrefour branches since they aim to different consumer groups.

It will take 6 months to a year to re brand all Carrefour stores into Big C "

HOW CAN THEY AIM TO DIFFERENT CONSUMER GROUPS IF THEY ARE ALL RE BRANDED INTO BIG C ?

THREE BIG C's IN PATTAYA JUST ONE OR TWO MILES APART SEEMS A BIG OVERLAPPING TO ME.

I GO TO CARREFOUR MOSTLY FOR CARREFOUR'S BRAND PRODUCTS, ONCE THEY'LL BE GONE I WILL BE GONE ALSO.

[MaiChai]

OMG carrefore's will become big c's; what a disappointment. Less choice and more blandness

[McFarang]

Will Big C maintain Quality & Choice that Carrefour does at the moment? I am talking about the Bakery in particular also I find that they always have a better Vegetable selection.Tescos are always running out or have poor quality Onions and potatoes but Carrefour fills this need.

Time will tell I suppose but Big C is my least favourite of all the Hypermarkets cheap cheap cheap.

[Sydebolle]

As a "professional" shopper for my restaurants I used to get Creme Fraiche, Pommery Mustard and Ladyfingers (latter for the creation of Tiramisu) from Carrefour. For the last six weeks everything was ongoingly "out of stock" and no new merchandise was imported.

The rebranding will be from Carrefour to (Very) or (Smaller) Big C; selling Foremost's Whipping Cream at THB 147 when Makro charges THB 99. The luckier among us can resort to Foodland and/or Villa Supermarket; the others = enjoy the local overpriced fare!

[quandow]

The produce (fresh fruits and vegetables) at Big C are noticeably inferior to CarreFour. This is a step backwards.

[thaimate]

The produce (fresh fruits and vegetables) at Big C are noticeably inferior to CarreFour. This is a step backwards.

Personally i find the produce at big c far better than Carrfours, and both 100% better than Tesco ,which is a disgrace here in Pattaya