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.