Lay Hong selling G-Mart stake to PanPages
Integrated poultry farmer Lay Hong has agreed to sell a 30 per cent stake in G-Mart Borneo Retail to B2B platform developer PanPages.
Lay Hong says the RM10.75 million (US$2.4 million) deal will enable PanPages to participate in G-Mart’s equity and collaborate in its online business.
Lay Hong says its grocery segment, the largest of its retail interests, is moving online.
In its annual report last year, Lay Hong said it had reviewed its business plans because of soft consumer sentiment. It launched a cost-cutting exercise, closing two non-performing G-Mart stores. It now has 16 stores in Sabah.
PanPages says its online product offerings have been moving to serve vertical industries such as industrial products, health and beauty, and now food and beverage. “As for Peninsular Malaysia, where e-grocery is gathering momentum, PanPages’ participation in G-Mart can produce synergetic effects for both businesses.”
“The disposal is expected to have a positive impact on Lay Hong’s future earnings once the tie-up with PanPages is implemented,” says Lay Hong.
PanPages not only builds business portals but also provides online and offline marketing for SMEs, and is active in Cambodia, Singapore, Malaysia, Thailand, the Philippines and Vietnam. It is currently providing marketing services in conjunction with Alibaba, Facebook and Google.
Panpages will fund the proposed acquisition through a combination of internal funds and bank borrowings.