Central Group takes control of Selfridges

Thailand’s Central Group is set to take control of Selfridges in a debt-for-equity deal with co-owner Signa. Central Group, which is controlled by the billionaire Chirathivat family, bought Selfridges with Signa Group, founded by Austrian property tycoon René Benko, in a £4bn deal last year. But the future of the 50:50 joint venture became uncertain this month after Signa replaced Benko with a restructuring expert as a financial crunch threatened the indebted business. The sale of Signa’s stake in Selfridges was among options to provide the business with cash to appease lenders. Central Group said yesterday that it had exercised its right to convert a €364m loan provided to the Selfridges group into equity. The conversion means that Central will become the majority shareholder and will gain control of the joint venture for the operating companies within the Selfridges Group. The Times (£)The Telegraph (£)The Guardian