Bangkok--Mar 3--GE Capital
GE Capital Thailand and the Central Group of Companies have announced a joint venture agreement to provide consumer finance and private label credit cards in Thailand. Under the terms of the agreement, GE Capital will acquire a majority stake in Central Card Co., which issues and operates the popular Central charge card.
"This joint venture with the Central Group represents a significant expansion of our presence in Thailand and reflects our long-term confidence in the Thai market,ๆ said Sherwood Dodge, president of GE Capital Thailand. ๕Today๔s announcement is the culmination of discussion that began in early 1997 and put GE Capital in partnership with Thailand's pre-eminent retail group.It also means we will be able to offer more financial products and services to both individuals and businesses in Thailand."
"Through this agreement, Central will gain as a partner one of the world's largest issuers of private label credit cards and will benefit from GE Capital๔s worldwide experience and expertise in this business,ๆ explained Mr. Suthichai Chirathivat,
Chief Financial Officer, Central Group of Companies."This move is in line with Central Group's strategy to refocus on its core retail businesses and reduce its role in non-core businesses."
The GE Capital/Central joint venture will operate and manage private label credit cards -- cards issued on behalf of department stores, or other individual retailers -- as well as hire-purchase finance and proprietary credit services utilizing GE Capital's international expertise and financial strength.
According to Mr. Dodge, the company will initially focus on further strengthening the Central Card through added enhancements and features. The Central Card offers a strong base on which to build, noted Mr.Dodge. It is already Thailand'sleading private label card with high-quality card base numbering more than 100,000. Additional card and other products and services may be added later.
Mr. Suthichai added "Central has established itself in a leadership position by developing the first credit card specifically for the retail trade in Thailand. This strength is complemented by GE Capital๔s world-class status in deploying state-of- the-art technology,thereby enhancing Central's existing competitive advantage."
GE Capital, with assets of over US$250 billion and net income of US$3.25 billion in 1997, is a diversified global financial services company with 27 specialized businesses. A wholly-owned subsidiary of General Electric Company of the U.S.A. GE Capital provides equipment management, mid-market and specialised financing, specialty insurance and a variety of consumer services to buisnesses and individuals around the world. GE is a diversified manufacturing,technology and services company with operations worldwide.
Central Group, the largest retail conglomerate in Southeast Asia,
is a leading Thai business concern with operations dating to 1947. Based in Bangkok, Central is a diversified group of companies encompassing retailing, hotels, property, wholesaling, manufacturing and food franchise operations. Its core business remain retailing with operations of Thailand's No. 1 Central Department Store (CDS) chain.
Since the merger of CDS and Robinson Department Store Plc, and through the establishment of Central Retail Corporation in 1995, Central Group has solidified its role as the dominant force in the Thai retailing industry.
For further information contact Nilobol Cowapituktas or Peter Poulos Presko Shandwick (tel.: 273-8800; fax: 273-8880) End.
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