Friday, April 8, 2011

Parkson ventures into Indonesia

KUALA LUMPUR: PARKSON HOLDINGS BHD []'s unit East Creat International Ltd (ECI) has entered into a conditional joint-venture agreement with PT Mitra Samaya and Parkson Retail Asia Pte Ltd (Parkson Asia) to combine its Malaysian and Vietnam retail business with the Indonesian retail business of PT Tozy Bintang Sentosa (TBS).

Parkson Asia is a wholly owned subsidiary of ECI.

Parkson said on Friday, April 8 that collaboration involved the acquisition of the entire 100% shareholding of PT Tozy Sentosa, a unit of TBS by Parkson Asia for US$13 million.

Upon completion of the acquisition, Mitra Samaya will subscribe for shares in and become a 9.9% shareholder in Parkson Asia.

The collaboration also involves the injection of Parkson Corporation Sdn Bhd by ECI into Parkson Asia, it said.

Parkson said the financing for the collaboration would be sourced from internally generated funds.

'The proposed collaboration provides the company with an opportunity to establish a presence in Indonesia and extend its international network into Indonesia which has a large domestic retail market given its population base of over 240 million people,' it said.

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