Central Retail Corporation Public Company Limited (SET: CRC) has reportedly declined to invest in Selfridges Group, a leading luxury retail group in Europe, following a resolution passed by its Board of Directors on January 21.
CRC announced that the Board of Directors’ meeting held on January 21, 2022, had resolved to decline to invest, whether in whole or in part, in the Selfridges Group pursuant to the Definitive sale and purchase agreement in place of Harng Central Department Store Limited (HCDS), under the Flagship Undertaking Letter.
Under the Flagship Undertaking Letter, CRC has the right to invest in the department store business, excluding real estate (investment in operating companies), of the Selfridges Group, in whole or in part, prior to the investment closing date under the Selfridges Group’s definitive sale and purchase agreement (closing date), or to invest in the department store business in the operating companies of the Selfridges Group held by HCDS within 90 days from the date on which HCDS successfully invests at the price as agreed under the Flagship Undertaking Letter.
The Board of Directors resolved that the company will not invest in the department store business of the Selfridges Group as offered by HCDS, including to not invest within 90 days from the date on which HCDS invests in such department store business.
Moreover, the board viewed that this investment by HCDS should allow the company, as a member of Central Group, to benefit from HCDS’s business relationships, such as by leveraging relationships with world-class brands. In this respect, the board had considered the aforementioned investment opportunity, cognizant of the rights and the best interests of the company and all shareholders.
