KUALA LUMPUR (Dec 12): AEON Co (M) Bhd announced today that it has lowered its stake in the joint venture with Thai company Index Living Mall Company Ltd (ILM), to better focus on its own departmental store and supermarket business.

In a filing with the stock exchange this evening, AEON said the company has entered into a supplemental agreement to the original JV agreement dated Sept 20, 2013, to revise the shareholding structure of AEON Index Living Sdn Bhd.

Under the supplemental pact, the new shareholding structure of AEON Index according to the investment ratio has been revised to ILM 51%: AEON 49%, from ILM 30%: AEON 70% previously.

That means AEON Index has allotted an additional 30 million new ordinary shares to ILM, who now has 51 million shares in the JV company. As such, AEON Index has ceased to be a subsidiary of AEON, the filing said.

The restructuring is in line with its corporate strategy to focus on expanding its departmental stores and supermarkets business, AEON added.

In Sept 2013, AEON announced the incorporation of the joint venture company AEON Index with Bangkok-based ILM, to become a one-stop furniture retailer in Malaysia, providing complete sections of home or office furniture, home fashion products accessories and related services, under the trademark Index Living Mall.

Today's restructuring is not expected to have any material impact on the earnings per share, net assets per share and gearing of the company for the financial year ending Dec 31, 2017 (FY17), the filing added.

The company expects to complete the restructuring on or before end of this month.

Shares in AEON closed unchanged at RM1.80 at the end of trading hours today, valuing the company at RM2.51 billion. Year to date, the counter has lost some 29%.