Thai Retailer’s Shares Plunge on Plan to Sell Italy Business

Central Retail Corporation Pcl’s shares headed for the biggest decline in almost five years after it announced a plan to sell its high-end department store business Rinascente in Italy, a move that investors expect will hurt the bottom line.

The company, one of Thailand’s biggest retailers, is planning to sell Rinascente to Harng Central Department Store Co., a major shareholder, for €250 million ($295 million) to focus on its operations in Southeast Asia, it said in a filing on Wednesday. Harng Central also proposed to assume and repay the shareholder loan owed by CRC Holland B.V., a Central Retail unit that operates Rinascente stores.