SET-listed CP All Plc, the local operator of 7-Eleven convenience stores, is waiting for the right time to sell Siam Makro Plc's newly issued shares at a price of at least 42 baht each, aiming to increase the cash-and-carry chain's free float and trading liquidity.
CP All, which holds a 98% stake in Siam Makro, said it would continue to be the major shareholder of Makro with at least 50% after issuing Siam Makro's new shares to the public.
Umroong Sanphasitvong, executive director of Siam Makro Plc, said CP All is in the process of increasing the free float for Siam Makro. It submitted Makro's public offering (PO) proposal to the Securities and Exchange Commission last year.
The PO price is expected to be 42 baht or higher. CP All bought the Makro shares at 39 baht, but that price does not include interest costs during the past two years.
"We will wait for the right time to sell the Siam Makro PO shares," Mr Umroong said. "We won't sell them at a loss."
After the PO, CP All's shareholding in Siam Makro will be diluted to perhaps a 50% stake.
Meanwhile, Siam Makro set a 6-billion-baht budget to open 20 new stores this year. It projects to issue debentures to raise over 3 billion baht to expand its network overseas. Suchada Ithijarukul, chief executive of Siam Makro, said Tris Rating is doing its debenture ratings.
"A poor economy and low consumption are expected to hurt our sales and revenue, keeping growth below 10% this year," said chief financial officer Saowaluck Thithapant.
Last year Siam Makro posted a net profit of 5.37 billion baht on revenue totalling 155.9 billion baht.
For the 20 new stores planned this year, it will open 10 hypermarkets and 10 stores in smaller formats. It is upgrading its IT system after renovating its office.
Siam Makro is exploring expansion potential for its cash-and-carry business in Cambodia, Laos, Myanmar, Vietnam and India. The company's executive committee is considering a 3-billion-baht budget to open three new stores abroad, while it mulls partnerships with local investors.
MAKRO shares closed yesterday on the SET at 34 baht, down 25 satang, in trade worth 3.6 million baht. CPALL shares closed unchanged at 46 baht in trade worth 1.5 billion.