Siam Makro plans $258m expansion
Thai cash-and-carry chain Siam Makro plans to invest up to 9 billion baht ($258 million) in opening stores this year in Thailand and overseas.
Its parent company, CP All, which through its ownership of 7-Eleven Thailand is the country’s largest convenience store operator, plans to sell some of its 97 per cent stake in Siam Makro. It has appointed Siam Commercial Bank as financial advisor for a public share sale.
It is reported CP All aims to keep a stake of more than 50 per cent in Siam Makro, whose main customers are hotels, restaurants and small convenience stores.
Siam Makro plans to spend 6 billion baht to open 20 stores in Thailand this year, plus 3 billion baht to expand elsewhere in Southeast Asia. CFO Saowaluck Thitaphant says possible markets include Cambodia, Laos and Vietnam.
She says the company is also interested in India, and plans a store for Myanmar once the political climate is clearer following elections.
Siam Makro expects revenue to rise by less than 10 per cent this year.
CP All, controlled by billionaire Dhanin Chearavanont’s Charoen Pokphand Group, says it will use proceeds of the share sale to repay debt.