CP Axtra (CPAXT) announced that it has completed the acquisition of ordinary shares of The Food Purveyor Sdn. Bhd. Group on September 1, 2026, making the company an indirect subsidiary. Previously, Lotus's Stores (Malaysia) Sdn. Bhd., a subsidiary in which CPAXT holds an indirect 100% stake, had entered into an agreement to purchase all shares from the shareholders of The Food Purveyor, which operates premium supermarkets in Malaysia under the brands Village Grocer, B.I.G, BSC Foods, OTK, and The Food Merchant, totaling 50 branches. The company did not disclose the final investment value, funding sources, or details of its post-acquisition business plan in its latest announcement to the stock exchange. However, based on a previous report from March 2026, the investment value was MYR 1,660 million, or approximately 13,483 million baht, with funding coming from operating cash flow and external sources. TFP's profit is expected to be around MYR 38 million, or roughly 300 million baht per year, based on Malaysia's premium supermarket market size of MYR 4.1 billion, TFP's market share of 31%, and a net profit margin of 3%, which is higher than CPAXT's 2% but lower than C.P. All's 5%. The company is expected to incur debt of about 60-70% of the total investment value, requiring the use of some cash on hand of around 4-5 billion baht, and increasing its interest-bearing debt-to-equity ratio from 0.4 times to 0.42-0.43 times. However, analysts view this deal neutrally due to limited synergies and maintain a "Hold" recommendation with a year-end 2026F target price of 15.00 baht, based on a PER of 18.0 times.
CP Axtra Public Company LimitedCPAXT completed the MYR 1,660m acquisition of The Food Purveyor, adding ~MYR 38m annual profit but raising debt; analysts view it neutrally with limited synergies and a Hold rating.
