KUALA LUMPUR (Feb 13): Parkson Holdings Bhd shares were lifted by 4.25% today from a record low after a settlement agreement was reached between its Chinese entity and five parties, ending a long-drawn legal battle over a mall in China.

At 4.27pm, the counter was up two sen at 49 sen, after 338,700 shares were done, giving it a market capitalisation of RM512.26 million.

The stock closed at a record low of 47 sen yesterday. In a year, the stock has fallen 22.83%; it has lost 95% since its listing in 1993.

According to its technical chart, SJ Securities Sdn Bhd senior remisier Goh Kay Chong told theedgemarkets.com that there is some hot money to be collected by investors who are cutting their losses short.

He believes there is a likelihood that the stock would see a strong rebound in the near future.

Yesterday, Parkson said Serbadagang Holdings Sdn Bhd, a wholly-owned unit of East Crest International Ltd, which is in turn a wholly-owned subsidiary of Parkson, had entered into the settlement with five Chinese firms including plaintiff Dalian Tianhe Building Co Ltd (DT Building).

The other parties in the settlement are Hefei Parkson Xiaoyao Plaza Co Ltd, Shenzhen Xinhui Industrial Co Ltd, Dalian Tianhe Parkson Shopping Mall Co Ltd and Dashang Group Co Ltd.

The dispute dates back to 2004 when Shenzhen Xinhui transferred its 51% stake in Anshan Tianxing Parkson Shopping Centre Co Ltd (Anshan Parkson) to Hefei Parkson for 5.1 million yuan (RM3.16 million).

DT Building alleged that Shenzhen Xinhui held the Anshan Parkson stake as a nominee of Dalian Tianhe Parkson, and that the 2004 disposal was done without the agreement of Dalian Tianhe Parkson board.

In 2011, DT Building filed a lawsuit as a shareholder of Dalian Tianhe Parkson to seek a ruling that the 2004 disposal was void, and that Hefei Parkson return the Anshan Parkson interest to Shenzhen Xinhui. In February last year, the Dalian Intermediate Court agreed with DT Building's claims, which led to an appeal by Hefei Parkson.

The settlement agreement announced yesterday involved the proposed disposal by Serbadagang Holdings Sdn Bhd of its entire 60% equity interest in Dalian Tianhe Parkson Shopping Mall to Dashang Group for 1 yuan, and Hefei Parkson Xiaoyao Plaza Co Ltd to pay dividends to Serbadagang as compensation.

Both Serbadagang and Hefei Parkson entered into a compensation agreement on an initial compensation of 248 million yuan, which was agreed after arm's length negotiations.