Parkson buys Anshan Parkson stake, land for RM324m
Posted on | April 24, 2007 | No Comments
By THE EDGE
Parkson Retail Group Ltd (PRG), which runs the Lion Group’s retail chain in China, has stepped up its presence there by acquiring the remaining stake in a store and the land in Liaoning province for 730 million renminbi (RM324 million).
Lion Diversified Bhd announced on April 24 that PRG would acquire the remaining 49% stake in Anshan Tianxing Parkson Shopping Centre Co Ltd (Anshan Parkson) from Creation International Investment & Development Ltd for 280 million renminbi. Lion Diversified owns 55.46% of PRG.
In an announcement to Bursa Malaysia, it said PRG was also acquiring the 42,574 square metres site where the Anshan Parkson is located for 450 million renminbi from Lung Shing International Investment & Development Co Ltd.
In a separate statement to the Stock Exchange of Hong Kong Ltd, PRG said: “The Anshan store is the flagship store for the company in the northeast region of China and one of the major contributors in terms of revenue and profit to the group.”
With the latest move, it said Anshan Parkson as a unit would immediately enhance the growth and profitability of the group to speed up its expansion in that region.
The latest corporate move came after PRG started legal action against its joint-venture partner Anshan Tianxing International Properties Development Co Ltd (Anshan JV partner) on April 10 to recover loans totalling 65.9 million renminbi. PRG owns 51% of the joint venture, while the remaining 49% belongs to Anshan Tianxing — which is also the landlord of Anshan Parkson’s department store premises.
It said the beneficial owner of Creation International and Lung Shing International was Li Zhong Yong. Under the sale and purchase agreement, Li and his associates would not undertake any department store and retail business in Anshan city for two years.
Share
Comments
Leave a Reply
