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Parkson Retail Group shedding China subsidiary

Malaysian department store company Parkson Holdings intends to dispose of its interest in an indirect wholly owned China subsidiary, which it says would boost its current-year earnings by RM300 million (US$72.5 million).

Parkson says the transaction involves its Hong Kong-listed subsidiary Parkson Retail Group, of which it owns 54.6 per cent, selling off its entire equity interest in wholly owned China unit Beijing Huadesheng Property Management and a relevant shareholders’ loan. The purchasers are Shenzhen Qianhai Tulan Investment Centre and Shanghai Changkun Investment Management.

Following the disposal, says Parkson, the group’s earnings for the financial year ended June 30 next will be higher by about RM300 million, while its net assets will be higher by about RM300 million.
Subject to the approval of Parkson retail shareholders, the deal is expected to be completed next year, the group said in its filing with Bursa Malaysia.

Shenzhen Qianhai has also agreed to acquire the sale loan from Parkson Retail. The loan consideration, for 649.7 million yuan, was determined after an arm’s-length negotiation between Parkson Retail and Shenzhen Qianhai as well as Shanghai Changkun.

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