Parkson Retail Asia has agreed to purchase a 41.82 per cent stake in Sri Lankan lifestyle fashion brand Odel for LKR1.424 billion (US$10.86 million)

The acquisition will comprise the purchase of 60.625 million shares of Odel from Gunewardene family.

“The acquisition by Parkson Retail of a significant ownership in Odel marks a new chapter in the evolution of the company,” said Odel’s founder and CEO Otara Gunewardene.

“For our customers, employees and shareholders, this development represents exciting new prospects as the Odel brand will have more opportunities to maximise its potential and together with Parkson to explore new avenues to add value to the company.”

Commenting on the acquisition, Parkson Retail Asia MD, Datuk Alfred Cheng, said: “Sri Lanka has always been an attractive proposition, as an emerging market with its rising income per capita and growing middle class. As an established retail brand in Sri Lanka, Odel is already very well positioned to tap into the fast-growing middle class population.

“With Parkson’s investment, experience and network, Odel is well poised to harness the growth of the retail industry in Sri Lanka. This could set the stage for us to work together for expansion into the neighbouring countries of Bangladesh, Pakistan and India over time.”

The acquisition is expected to be completed as early as this week.

Considered one of Sri Lanka’s most upmarket local fashion retail brands, Odel commenced operations with a single store at Dickman’s Rd in 1990 and has since grown to a 15-strong network, including the flagship department store at Alexandra Place and two new-concept Luv SL stores.

Singapore-listed Parkson Retail Asia is a southeast Asian department store operator with a network of 54 department stores – 38 in Malaysia, eight in Vietnam and eight in Indonesia. The Parkson Retail Group listed on the Hong Kong Stock Exchange operates another 46 owned and six managed stores covering 31 major cities in China.

GB