Appleby acted as Cayman and BVI counsels for The Siam Commercial Bank Public Company Limited in relation to the acquisition of the retail business subsidiaries of the Charoen Pokphand Group.
The acquisition included the retail business subsidiaries of the Charoen Pokphand Group which consists of CP Holding (BVI) Investment Co Ltd, CP Lotus Corporation and Shanghai Lotus Supermarket Chain Store Co. Ltd.,
Appleby acted as Cayman and BVI counsels in relation to acquisition financing totalling US$360 million from four local banks and supports The Siam Commercial Bank Public Company Limited’s retail expansion plans in China.
The four banks include Siam Commercial Bank, Krung Thai Bank, Bangkok Bank and Thanachart Bank. The loan will play a very important part in driving the growth of Thailand’s offshore businesses and enhance the strength of the Thai economy as a whole, as well as support CP Lotus’ rapid growth after its restructuring two years ago.
The Appleby team was led by Jeffrey Kirk, a banking and finance partner in Appleby’s Hong Kong office, assisted by associates Rupen Shah and Maria Lau.
CP Lotus is currently ranked fifth amongst fifteen retailers who operate in the hypermarket business market in China. Their revised retail operations and strategy, based on the idea of having an in-depth understanding of China’s changing consumer wants and needs, has witnessed remarkable growth for the company. The totally integrated system, which provide consumers with high quality products and total traceability in the products that CP produces and sells, offers a ‘Farm to Family’ approach that no other retailer can match. Its new retail format has also attracted the attention of young customers represented by teenagers, college students and office workers who seek quality service in a chic and convenient environment.
Further to CP Lotus’ new expansion plans, the organisation has opened its first ‘CP Life Station’ at the Lotus Guangzhou Huang Shi Xi store in Shanghai last October, attributing the need for a new retail format in China’s urban areas. Another CP Life Station store was opened later in November in the district of Xuhui, Shanghai.
