Parkson Group Acquires Two Department Stores From Its Majority Shareholder

Parkson Retail Group has announced that the group will acquire two department stores in mainland China for RMB240 million from its majority stockholder, Parkson Holdings Berhad, Malaysia.

According to a report released by Parkson Group, the group plans to require 70% shares of Nanning Brilliant Parkson Commercial Company for RMB140 million and all shares of Tianjin Parkson Retail Development Company for RMB100 million. Of that total, 50% will be paid in cash and the other 50% will be paid by newly issued shares. The group will issue 1.99 million new shares at the price of HK$67.45 per share.

Parkson Group says that by December 2007, the net assets of Nanning Parkson was RMB37.02 million and the net profit was RMB16.97 million; and the net asset of Tianjin Parkson was RMB12.33 million and the net profit of the company was RMB9.37 million.

The integration period of Nanning Parkson and Tianjin Parkson is expected to be short, so the acquisitions may immediately upgrade the increase capacity and profitability of the group.