Thai giant Central Retail sells Vietnam electronics business to Pico for $36 mln

Thailand’s Central Retail has announced the sale of its Vietnamese electronics retail business to local retailer Pico Holdings JSC for nearly THB1.14 billion ($36 million), as it sharpens its focus on core businesses in the country.

According to its filing with the Stock Exchange of Thailand on Tuesday, Central Retail reached a share purchase agreement with Pico to divest its investment in NKT New Solution and Technology Development JSC, operator of Nguyen Kim electronics retail chain, including all its wholly-owned subsidiaries.

Central Retail said it will record an approximate one-time, non-cash THB5.9 billion ($190 million) impairment charge in the fourth quarter of 2025. The company’s financial statements remain strong, and this impairment will not have any material adverse effect on the business operation, assets, financial conditions, and dividend payment, it noted.

This transaction forms part of the company’s strategy to optimize its business portfolio in Vietnam, with a focus on reallocating resources to increase operational efficiency, accelerate business expansion, and enhance returns across its two core businesses in the country – food and property, the Thai giant stated.

Central Retail acquired a 49% stake in NKT in 2015 and raised its ownership to 100% in 2019. The deal value was estimated at VND2.6 trillion ($98.83 million).

Nguyen Kim chain currently has 59 stores in Vietnam, down from over 70 outlets recorded before Central Retail’s full acquisition.

Central Retail posted revenues of nearly THB35.48 billion ($1.09 billion) in Vietnam in the first nine months of this year, down 6.6% year-on-year due to exchange rate fluctuations.

The total Vietnam revenues included THB31.6 billion ($975.18 million) from food products, THB7 million ($216,080) from fashion products, and THB3.88 billion ($119.77 million) from hardline products such as home appliances and electronic items.