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Parkson Retail Asia subsidiary to dispose about 30% equity interest in Parkson Hanoi
MAINBOARD-LISTED Parkson Retail Asia said on Tuesday that its wholly owned subsidiary Parkson Vietnam Co will dispose about 30 per cent equity interest in Parkson Hanoi Co to a Hoang Manh Cuong for US$5,000.
Parkson Hanoi, which is 75.4 per cent owned by Parkson Vietnam, is principally engaged in the retailing and operation of modern shopping centres in Hanoi. Following the proposed disposal, Parkson Vietnam's stake in Parkson Hanoi will be reduced to 45.5 per cent, making Parkson Hanoi an associated company of Parkson Vietnam.
Parkson Vietnam will also be appointed to manage the stores owned by Parkson Hanoi, which has reportedly been loss-making for the past few years. It recorded losses before tax of approximately S$5 million for the financial year ended June 30, 2013, of approximately S$7 million for the financial year ended June 30, 2014, and of approximately S$7 million for the nine months ended March 31, 2015.
The proposed disposal to Mr Cuong, a local partner, is to facilitate the process required for the closing of the Landmark 72 store which has ceased operations in January 2015. Said Parkson Retail Asia: "By reducing its equity stake in Parkson Hanoi, the group's share of Parkson Hanoi's losses will be correspondingly reduced."
The company added that the proposed disposal, expected to be completed by June 30, will not have any bearing on its financials.