On Tuesday at 12:01 PM (Bangkok Time), the share price of Central Retail Corporation Public Company Limited (SET: CRC) decreased by 5% to THB 33.25 per share.
CGS-CIMB Securities stated that the decline was potentially due to the news regarding the procedure to rehabilitation as a result of a specific legal framework in Germany of KaDeWe.
The analyst saw the downtrend of CRC as a good opportunity to accumulate the stock since its share price is now below the firm’s comfortable level of THB 35 from two months ago, while the issue regarding the aforementioned news does not have any impact on CRC since KaDeWe is owned by Central Group.
Finansia Syrus Securities also provided information on the matter, stating that KaDeWe Store, having Central Group as a shareholder, has entered into the rehabilitation plan following the increase in rental fees, which caused the company to take a loss. The entry into the rehabilitation plan was an effect of the legal process in Germany, while department store businesses from Central Group in other countries continued operating.
However, the investment in KaDeWe Group was solely the private investment of Central Group, which excluded Central Retail Corporation Public Company Limited (SET: CRC) and Central Pattana Public Company Limited (SET: CPN).
CRC owned only one department store in Europe, called Rinascente, in which the company holds 100% of shares, and the store has always contributed profit to the company.
