Dairy Farm International Group (DFI) is selling its grocery business in Malaysia, including supermarket chain Giant, for an undisclosed sum after 24 years of operations in the country.
The Hong Kong-headquartered, Singapore-listed retail group has signed an acquisition deal with a group of local businessmen led by Datuk Andrew Lim Tatt Keong, the group deputy chairman of Sogo Department Store and executive chairman of the Gama Group.
The business transition is expected to complete next month with the new owner taking on 2500 team members from Giant, Cold Storage and Mercato grocery chains.
The Edge Markets said the deal could worth “at least a couple of billion (ringgit)”.
DFI entered the country in 1999 by acquiring a 90 per cent stake in Giant through its subsidiary GCH Retail. The subsidiary recorded a net loss of US$23.4 million in 2021 with store numbers reduced to less than half compared to the pre-Covid period.
“By bringing these businesses together under experienced local ownership, both customers and team members will continue to benefit from the positive changes to Giant, Cold Storage and Mercato that have taken place in recent years, forging an exciting platform for future growth,” the company said in a statement.
DFI will continue to operate the Guardian health and beauty business in Malaysia.
Further reading, Singaporean retailer Mustafa acquired 591 unsold retail units in Johor Bahru’s shopping mall Capital City Mall from Capital World for US$86.8 million.