Dairy Farm to sell its Malaysian grocery business
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Dairy Farm International Group (DFI) is disposing its grocery venture in Malaysia, which includes the supermarket chain Giant, for an unspecified figure after having operated in the country for 24 years.
The retail group, based in Hong Kong and listed in Singapore, has inked an agreement with a group of Malaysian business people headed by Datuk Andrew Lim Tatt Keong, who is both the deputy chairman of Sogo Department Store and executive chairman of the Gama Group.
The switchover is anticipated to be finished by next month and the new owner will take over 2500 staffs from Giant, Cold Storage and Mercato grocery businesses.
The Edge Markets suggested that the agreement could be worth “at least a couple of billion (ringgit)”.
DFI entered Malaysia in 1999 by obtaining a 90 percent stake in Giant via its subsidiary GCH Retail. The subsidiary registered a net loss of US$23.4 million in 2021 with store numbers being cut to less than half of the pre-Covid period.
“By uniting these companies under experienced local leadership, we have laid the foundations for them to continue growing and contributing to the Malaysian economy,” the company said.
Questions & Answers
Q.Which specific supermarket brands are included in Dairy Farm's Malaysian grocery business sale?
Which specific supermarket brands are included in Dairy Farm's Malaysian grocery business sale?
The sale of Dairy Farm's grocery venture in Malaysia includes the supermarket chain Giant, along with the Cold Storage and Mercato grocery businesses. These brands will be taken over by the new owners.
Q.When did Dairy Farm International first establish its presence in the Malaysian market?
When did Dairy Farm International first establish its presence in the Malaysian market?
Dairy Farm International entered Malaysia in 1999. This was achieved by acquiring a 90 percent stake in Giant through its subsidiary, GCH Retail, beginning their 24-year operation in the country.
Q.What was the financial performance of Dairy Farm's Malaysian subsidiary in the year 2021?
What was the financial performance of Dairy Farm's Malaysian subsidiary in the year 2021?
Dairy Farm's subsidiary, GCH Retail, recorded a net loss of US$23.4 million in 2021. This period also saw a significant reduction in store numbers, falling to less than half of their pre-Covid level.
Q.Who is leading the group of Malaysian business people acquiring Dairy Farm's grocery operations?
Who is leading the group of Malaysian business people acquiring Dairy Farm's grocery operations?
The group of Malaysian business people acquiring the grocery operations is headed by Datuk Andrew Lim Tatt Keong. He currently holds positions as deputy chairman of Sogo Department Store and executive chairman of the Gama Group.
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