Parkson HK to take over Singapore assets
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Malaysia’s Parkson Holdings is to sell a 67.6 per cent stake in its Singapore-listed Parkson Retail Asia Ltd to its Hong Kong listed subsidiary Parkson Retail Group Ltd.
The rearrangement of its assets will net it US$167.2 million, according to the financial press.
The purpose of the exercise is to consolidate the retail business of the Singapore-based business, which operates in Southeast Asia, with the Hong Kong listed business which operates in China.
All three companies predominantly trade in the department store business with their formats becoming increasingly aligned across markets.
The move will also allow Parkson Holdings (Malaysia) to raise cash for investment in business expansion which has not been detailed as yet.
Parkson is a subsidiary of the Lion Group, headed by Malaysian billionaire William Cheng.
Questions & Answers
Q.Which company is selling its stake in Parkson Retail Asia Ltd?
Which company is selling its stake in Parkson Retail Asia Ltd?
Malaysia’s Parkson Holdings is selling its 67.6 per cent stake in Parkson Retail Asia Ltd. This move will consolidate the retail business of the Singapore-based entity.
Q.What is the primary reason for this asset rearrangement?
What is the primary reason for this asset rearrangement?
The main purpose is to consolidate the retail business of the Singapore-based Parkson Retail Asia with the Hong Kong listed Parkson Retail Group. This aligns their predominantly department store operations across different markets.
Q.How much cash will Parkson Holdings (Malaysia) gain from this transaction?
How much cash will Parkson Holdings (Malaysia) gain from this transaction?
Parkson Holdings (Malaysia) will net US$167.2 million from the sale of its stake. This cash is intended for investment in business expansion, though specific details are not yet available.
Q.Who is the ultimate parent company of Parkson?
Who is the ultimate parent company of Parkson?
Parkson is a subsidiary of the Lion Group. This group is headed by Malaysian billionaire William Cheng, who oversees the various entities mentioned.
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