KUALA LUMPUR: Two indirect subsidiaries of Parkson Holdings Bhd, Grand Parkson Retail Group Ltd and AUM Hospitality Sdn Bhd, have formed a joint-venture entity (JV) for the purposes of venturing into the food and beverage business in China.
In a filing with Bursa Malaysia yesterday, Parkson Holdings said the total initial investment of the JV would be 40 million yuan (RM23.06 million), which comprises a share capital contribution of four million yuan and a shareholders’ advance from Grand Parkson of 36 million yuan.
The JV entity, named “Lion Food & Beverage Ventures Ltd”, will be 91% owned by Grand Parkson and 9% owned by AUM Hospitality. It will principally be engaged in the establishment and management of restaurants.
Grand Parkson is a wholly-owned unit of Hong Kong-listed Parkson Retail Group Ltd (PRG), which is in turn 52.61% owned by Parkson Holdings (fundamental score: 1.65; valuation score: 1.2).
AUM Hospitality is 60% owned by Prime Yield Holdings Ltd, which is in turn a wholly-owned unit of Parkson Holdings.
AUM Hospitality owns restaurants and operates franchised brands in Malaysia. Current brands under the company include Johnny Rockets and The Library Coffee Bar.
“In view of the dynamic market situation in China, the group is undergoing a business transformation, from traditional department store business to lifestyle concept retail business,” said Parkson Holdings.
Parkson Holdings’ counter closed unchanged at RM2.49 yesterday, translating into a market capitalisation of RM2.57 billion.
This article first appeared in The Edge Financial Daily, on January 27, 2015.