The share price of NR Instant Produce Public Company Limited (SET: NRF) rose 4.5% in the morning session after the announcement of the new investment in retail business in the United Kingdom.
The announcement led NRF’s share price to close THB0.25 or 4.59% higher to THB5.70 per share at the closing of the morning session on Thursday.
The company stated that its Board of Directors on May 31, 2023, passed a resolution to invest in Chuanglee businesses which are oriental food wholesaler and retailer in the United Kingdom.
The transaction was completed on July 5, 2023, after NRConsumer Limited, a wholly owned subsidiary of NRF, purchased a 100% stake from two major shareholders of Galalane Limited, which operates Chuanglee business, at a valuation of 221.2 million baht.
Galalane Limited is a holding company holding 100% in Chuanglee Limited (CNL) and Chuanglee Cash & Carry Limited (CCC). These companies are wholesalers and retailers offering oriental food in the United Kingdom, especially Thai and Chinese foods. CNL services products to business-to-business customers while CCC services oriental food products to business-to-consumer customers and partially to business-to-business customers. CCC has a store in London, United Kingdom.
NRF noted that this investment is a strategic investment to expand the company vertically and improve access to consumers. The company will create a platform and analyze data from selling products in Chuanglee business to develop the company’s products to meet customers’ demand. In addition, this would sustainably enhance the core business of the company and improve revenue and margin of the company. This is because the company can benefit from selling products directly from the factory to consumers. The company expects revenue recognition in the third quarter of 2023.
