CPAXT’s Business Restructuring: A New Era for Lotus and Makro

Siam Makro Public Company Limited, formerly known as MACRO, has undergone significant changes. The company has consolidated its Lotus business and rebranded to modernize its image, investing 5,000 million baht to remodel 18 branches. This transformation aims to make the company more competitive, particularly against rivals like “Big C”.

A New Look for Makro

Makro’s department store has evolved from a simple wholesale store to a more vibrant and modern space. The company has also customized its military formations to compete with “GO Wholesale”, a new wholesale department store from the Central Group.

Ek-Chai Distribution System: The Soul of Retail and Wholesale

Ek-Chai Distribution System Co, Ltd (Ek-Chai) has been integrated into CPAXT, bringing with it a robust warehouse and distribution center network. As of June 30, 2022, Ek-Chai has 8 distribution centers in Thailand, covering approximately 277,000 square meters, and two online distribution centers spanning 13,700 square meters.

The Integration Process

CPAXT has received the transfer of Lotus’s Stores (Thailand) Co., Ltd. (Thailand Lotus) and merged with Ek-Chai to form a new company. The shares will be delisted, and new securities, CPAXTT, will be introduced to the market.

Shareholder Implications

Shareholders who agree to the transaction will exchange their shares for new shares in the ratio of 1 original share of CPAXT per 0.50 new share and 1 existing Ek-Chai share per 10.00 new share. Those who do not agree can sell their shares to CP All Public Company Limited (CPALL) at a price of 31.25 baht per share.

Benefits of the Restructuring

The integration is expected to bring about several benefits, including:

• Convenience in management
• Reduced complexity and unnecessary expenses
• Economies of scale, leading to significant cost savings
• A full triangular formula, encompassing retail (Lotus), wholesale (Makro), and distribution center (Ek-Chai) businesses

What’s Next for CPAXT?

While the rebranding and business restructuring are complete, the stock price remains stagnant. Investors eagerly await the outcome of the restructuring, hoping for a significant increase in the stock price.