A Singaporean investment company has taken a strategic stake in the Malaysian licenceholder of Japanese department store brand Sogo.

Singapore-listed LTC Corporation, through a wholly-owned subsidiary, has taken a 50 per cent share of USP Equity in equal partnership with USP Resources, which has acquired USP’s shareholding in SKLDS, which operates Sogo under licence from Sogo & Seibu  of Japan.

LTC, traditionally involved in property development, steel trading and investments in Malaysia, China and Singapore, says in a regulatory filing the mover is part of a strategic initiative to broaden its business base.

“The LTC Group has been looking for a new business to generate additional income streams and diversify its asset and revenue base. Venturing into the retail and distributive business in Malaysia is a step in the direction of achieving these objectives,” it said.

The investment cost LTC MYR70.14 million (US$18.17 million).

Sogo Malaysia is a full-line department store targeting domestic consumers in the middle market, ranging grocery, cosmetics, fragrances, apparel and homewares.