Singaporeans spend money on Sogo Malaysia
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A Singaporean funding firm has taken a strategic stake within the Malaysian licenceholder of Japanese division retailer model Sogo.
Singapore-listed LTC Company, by way of a wholly-owned subsidiary, has taken a 50 per cent share of USP Fairness in equal partnership with USP Assets, which has acquired USP’s shareholding in SKLDS, which operates Sogo beneath licence from Sogo & Seibu of Japan.
LTC, historically concerned in property improvement, metal buying and selling and investments in Malaysia, China and Singapore, says in a regulatory submitting the mover is a part of a strategic initiative to broaden its enterprise base.
“The LTC Group has been in search of a brand new enterprise to generate further revenue streams and diversify its asset and income base. Venturing into the retail and distributive enterprise in Malaysia is a step within the course of attaining these aims,” it stated.
The funding value LTC MYR70.14 million (US$18.17 million).
Sogo Malaysia is a full-line division retailer concentrating on home shoppers within the center market, ranging grocery, cosmetics, fragrances, attire and homewares.
Questions & Answers
Q.What kind of business does LTC Company typically engage in?
What kind of business does LTC Company typically engage in?
LTC Company has traditionally been involved in property development, steel trading, and investments. Its operations span Malaysia, China, and Singapore, reflecting a diverse business portfolio before this retail venture.
Q.What was the financial value of LTC Company's investment in Sogo Malaysia?
What was the financial value of LTC Company's investment in Sogo Malaysia?
LTC Company invested MYR70.14 million into the Sogo Malaysia licenceholder. This amount is equivalent to approximately US$18.17 million at the time of the transaction, as stated in the regulatory filing.
Q.What is the strategic reason for LTC Company making this investment?
What is the strategic reason for LTC Company making this investment?
LTC Company aims to broaden its business base, generate additional income streams, and diversify its asset and revenue base. Venturing into Malaysian retail aligns with these objectives for the group.
Q.What type of products does Sogo Malaysia sell and who is its target customer?
What type of products does Sogo Malaysia sell and who is its target customer?
Sogo Malaysia operates as a full-line department store. It targets domestic middle-market consumers with a wide range of products including groceries, cosmetics, fragrances, apparel, and homewares.
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