afterCP Group Restructuring the new retail and wholesale business with business transfer Lotus’s in Thailand and Malaysia go under “Makro” making the total value of the two businesses at 429,867 million baht, becoming a regional leader in retail
by MACRO has offered for sale of newly issued ordinary shares and existing ordinary shares to the public; or Public Offering (PO) The amount does not exceed 1300 million shares and may allocate excess shares (green shoes) not more than 130 million shares, open to retail investors to subscribe.December 4-9, 2021
BrandBuffet summarizes 10 issues, business direction of “Makro-Lotus” and the subscription of MAKRO shares as follows:
1. Tap the PO price at 43.50 baht per share.
– MAKRO shares set a PO price for all investors to subscribe at 43.50 baht per share, which is the same price as the Swap Price (exchange price) during Siam Makro Plc. Issue specific capital increase (PP) shares to accept the entire business transfer of Lotus Group from CP Retail Holding Company Limited
– The offering price is 43.50 baht per share, lower than the average share price of MAKRO for the past 1 week, which is approximately 47 baht per share, with a discount of 7.5% and lower than the average share price of the past 1 month, which is 48 baht per share. 9.4% discount
2. P/E 43.86 times
– MAKRO capital increase share price at 43.50 baht, equivalent to a Price to Earnings Ratio: P/E of approximately 43.86 times and the Enterprise Value to EBITDA (EV/EBITDA) ratio of approximately 17.99 times.
3. Raising funds of 6.2 billion
– IPO of 1300 million newly issued ordinary shares at a price of 43.50 baht, including the fundraising value 56,550 million baht If the total shares exceed 130 million shares, there will be a fundraising value. 62,205 million baht
– The objective of fundraising 50% is to expand the business both in Thailand and abroad of Makro and Lotus. including investing in O2O technology and the other 50% goes to loan debt
4. Retail sale of 100 million shares
– MAKRO shares are allocated for general retail investors. (not holding shares MAKRO,CPALL,CPF) 100 million shares at 43.50 baht per share (worth 4,350 million baht)
– Open for subscription on December 4-9, 2021 at all branches of Bangkok Bank and Siam Commercial Bank. including Bangkok Bank mobile apps, SCB EASY and TrueMoney Wallet by KTBST Securities
– Retailers subscribe for a minimum of 500 shares or 21,750 baht and subscribe for a multiple of 100 shares.
– Allocated by Small Lot First method, each Settrade in the first round can get 500 shares first, if there are remaining shares allotted in the next round, 100 shares per round until the stock runs out
– In the case of a large number of subscribers As a result, the first round cannot allocate 500 shares per subscriber. The system will “randomly” allocate 500 shares to each subscriber until the total number of shares offered for sale is reached.
– Those who have not been allotted and oversubscribed will be refunded within 7-10 days after the last subscription date.
5. Allocation of 478 million shares of existing shareholders
– The existing shareholders of 3 companies, namely MAKRO, CPALL and CPF, have been allocated 478 million shares of Makro capital increase (worth 20,810 million baht).
– Determine the rights of existing shareholders to be allocated as follows
1. Existing shareholders of MAKRO in the ratio of 10 ordinary shares of MAKRO to 1 ordinary share of MAKRO offered for sale.
2. Existing shareholders of CPALL in the ratio of 15 ordinary shares of CPALL to 1 ordinary share of MAKRO offered for sale.
3. Existing shareholders of CPF at the ratio of 70 ordinary shares of CPF to 1 ordinary share of MAKRO offered for sale.
– Minority groups of existing shareholders subscribed on December 4-9, 2021 at all branches of Bangkok Bank and Siam Commercial Bank. including Bangkok Bank and SCB EASY mobile apps
– Minimum subscription 1 share and multiply the number of 1 share (oversubscribe or lower than the right reserve rights for all 3 companies) reserve at a price of 43.50 baht per share
– Settrade system allocated according to the original shareholding rights of all 3 companies in the first round In the case of allocation according to the rights and having shares The system is allocated to overbookers.
– Refund of subscription for unallocated shares 7-10 business days after the last subscription date
6. Sell 423 million shares of institutional investors
MAKRO capital increase shares are offered exclusively to Cornerstone Investors, 14 institutional investors, totaling 423 million shares, valued at more than 18.4 billion baht or 32.5% of the total PO shares being offered. (excluding the allocation of excess shares)
7. “Makro” wholesale business plans to open 4-6 branches per year
– “Makro” Wholesale Business (Cash and Carry) As of September 30, 2021, there are a total of 145 branches in Thailand, 138 branches, 7 foreign branches, namely 2 branches in Cambodia, 3 branches in India (under the brand LOTS Wholesale Solutions), China 1 Branch and Myanmar 1 branch
– Set a target 3 years from now to expand 10 branches per year both in Thailand and abroad
– At present, Makro sells products through Makro Stores, which are offline channels in 6 formats according to the size of the sales area. product group ratio and variety of products And the online platform is the website Makroclick.com, the Makro Application app and the Makro Line Official Account.
8. “Lotus” Thai-Malaysia more than 2,000 branches
– Makro received the transfer of Lotus business in Thailand and Malaysia from CP Group on October 25, 2021 as a B2C retail business both offline and online (O2O) in the form of Omni-Channel
– Lotus Group, as of September 30, 2021, has a total of 2,164 stores throughout Thailand, comprising 222 hypermarkets, 192 supermarkets and 1,750 mini-supermarkets. Total 720,000 square meters (excluding shopping centers invested by Lotus Retail Growth Real Estate and Leasehold Fund (LPF), a total of 23 locations)
Lotus’s business in Malaysia has 46 hypermarkets, 16 supermarkets and manages rental space in 57 shopping centers, with a total leasable area of 296,000 square meters, with an occupancy rate of 92%.
– Lotus set a goal 3 years from now to lead Thai retail brands to fly the flag in Southeast Asia Growing from a local player to a regional level by expanding 10 branches per year
9. Push online sales for 3 years, proportion 15-20%
– During the first 9 months of 2021 in the situation of COVID-19 Found that online sales of Makro and Lotus increased by 60%, representing sales of over 20 billion baht.
– Currently, the overall online sales of fresh food products in Thailand account for only 2% of the retail business. There is still a lot of growth opportunity. It is expected that by 2025, the proportion of online fresh food products will increase to 22.3%.
– Makro and Lotus Plans to expand the online platform more in 2022. Makro will provide B2B Marketplace service while Lotus will open an app for B2C platform service. All branches can deliver products within 1 hour, and both “Makro-Lotus” will jointly launch a new B2B2C service. Set a target to increase the proportion of sales from online channels by 15-20% within 3 years
10. “Makro-Lotus” with total revenue of 4.29 billion, No. 2 retail in Asia
– In 2020, Makro had a total revenue of 218,760 million baht and a profit of 6,524 million baht, while Lotus in Thailand and Malaysia had a total revenue of 211,107 million baht and a profit of 1,514 million baht after the merger of the two groups, making MAKRO a company that has total revenue of 429,867 million baht, is the number one in wholesale and retail business in ASEAN and the number 2 in Asia
– As for the operating results for the first 9 months of 2021, total revenue was 319,563 million baht and net profit was 5,344 million baht.
