Wren, I think they will be able to sell the bonds. Several months ago, the CP Group got themselves in a good enough position to bid on some of those "bad loans" that were being sold at major discounts. They recently sold off their interest in KFC (see article below) so that may also have boosted their balance sheet.
The must frustrating thing is trying to figure out what slice of the group pie we actually benefit from. As I understood it, the CPPKY ADRs were mainly tied to the China ventures. However, I still think we had a stake in the main Thai chicken outfit and probably the Telecom Asia enterprise. With the big focus on Telecoms, maybe that "Telecom Asia" albatross will turn into an asset.
CP switching to selling 'World' food, NATION
( The Nation (Thailand) )
ACHARA PONGVUTITHAM; 02-02-2000
CHAROEN Pokphand (CP) Group will sell its 51-per-cent stake in CP-KFC Co. Ltd., which operates Kentucky Fried Chicken restaurants, to KFC International
(Thailand) Co. Ltd. so that it can concentrate on its own restaurant chains in order to turn itself into "the kitchen of the world".
For its part, KFC will concentrate on building the brand image of KFC restaurants in Thailand, said Suwanna Usanachitt, marketing director of KFC International (Thailand). Although negotiations for the purchase of
the stake in CP-KFC had yet to be finalized, she said they were progressing smoothly.
"It is a happy discussion as we and CP have achieved our wishes," said Suwanna. KFC continued to work closely with CP, which was its major chicken supplier.
CP-KFC operates between 30 and 40 KFC outlets in Thailand.
Following the sale, CP would promote its own restaurant Chester's Grill. The group would introduce more products and promote a brand image, said Dhanin Chearavanont, chairman and chief executive of CP Group. Chester's Grill would begin selling fried chicken and CP would sell Chester's Grill franchises in neighboring countries.
"CP Group has the advantage of experience in the dining culture of developing countries as well as a variety of raw materials that will help it penetrate export markets," he said. Growing demand for Thai food internationally would also benefit the group. The group was also creating a new fast-food chain that would serve Thai food, said Adirek Sripratak, CP executive vice
president. The chain would be named "Bua Baan" (Opening Lotus) in Thailand,but would operate under a different name in overseas markets, he said. The group planned to sell Bua Baan franchises within two years. CP would officially launch the new Bua Baan fast-food chain in its pavilion at the upcoming BOI Fair 2000, Adirek said. The fair begins on Feb 3 at Muang Thong Thani on Chang Wattana Road.
The group planned to open at least 10 wholly owned outlets this year,at a cost of Bt2.5-3 million each, he added. The locations of the outlets had yet to be determined.
Customers would be offered set menus of Thai food, such as green curry with chicken or chilli paste with fresh vegetables and rice, at prices of about Bt60-70, Adirek said.
The first 30 outlets would be used to standardize quality, taste and marketing to ensure high profits for ranchisees.
"We have to test our operation especially for marketing and standardized taste before launching franchises," he said. Once a single, nationwide standard was achieved, the group would be able to sell franchises.
WORLDSOURCES ONLINE, INC., A JOINT VENTURE OF FDCH, INC. AND WORLD TIMES,
INC. NO PORTION OF MATERIALS CONTAINED HEREIN MAY BE USED IN ANY MEDIA
WITHOUT ATTRIBUTION TO WORLDSOURCES ONLINE, INC.
COPYRIGHT ¸ 2000 BY WORLDSOURCES ONLINE, INC.
ACHARA PONGVUTITHAM, CP switching to selling 'World' food, NATION. , The Nation (Thailand), 02-02-2000. |
