Lombard sells 10% stake in Thai department store chain

The move came shortly after the company's stock reached a near two-month high of THB65 in response to an announcement that sales were likely to grow 20% in 2012 on the back of new store openings. Lombard affiliate Asia Investment International sold 111.3 million shares at THB60.5 apiece, a 4.3% discount to Thursday's closing price, through block trades.

The stock closed down nearly 7% on Friday on completion of the transaction, although it remains up 49% on a one-year basis, versus a 34% gain in the Thailand SET Index.

Lombard first invested in Robinson in 2009. According to AVCJ Research, the private equity firm initially acquired 48 million shares - or a 4.35% stake - from Farallon Capital Management for $11.1 million. The company's major shareholders are Central Retail Corporation and CRG Service, which between them own 53.8%. Both entities are controlled by the Chirathivat family.

Robinson was founded in 1979 and had 27 stores, comprising 10 in the greater Bangkok area and 17 elsewhere in the country, as of September. Last year, the company said it would spend $130 million opening seven new outlets by the end of 2012, taking its total to 30. Preecha Ekkunagul, Robinson's president, said the company could open at least one store in each of Thailand's 75 provinces over the next 10-20 years.

Robinson announced a consolidated net profit of BHT1.4 billion ($45.6 million) for the first nine months of 2012, up 24.6% year-on-year. For 2011 as a whole, revenues reached THB17.6 billion, delivering a net profit of THB1.6 billion. Revenue and profit were THB12.8 billion and THB1 billion, respectively, in 2009, the year Lombard invested.

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• Topics
• Consumer
• Southeast Asia
• Exits
• Southeast Asia
• Thailand
• Consumer
• Exit
• Lombard Investments