Parkson to be left with only one store in Vietnam after disposing of shopping centre

KUALA LUMPUR (July 28): Parkson Holdings Bhd’s unit, Parkson Haipong Co Ltd, has proposed to dispose of Parkson TD Plaza Shopping Center in Hai Phong, Vietnam for US$10 million (RM42.5 million).

Parkson Haipong is wholly-owned by Singapore-listed Parkson Retail Asia Ltd (PRA), which is 67.96%-owned by Parkson Holdings.

In a filing ysesterday, Parkson said Parkson Haipong and the buyer, Thuy Dong Construction & Trading Joint Stock Co, took into account the market valuation of US$9.5 million on the property in arriving at the US$10 million (S$13.1 million) purchase consideration.

However, the consideration is below PRA’s book value of the property of S$13.7 million, resulting in a S$700,000 loss after VAT and transaction costs.

Parkson Haipong operates two stores in Vietnam, with the other one located in Ho Chi Minh City.

“Following the completion of the disposal of the property, Parkson Haiping will only continue its business of operating and managing the store in Ho Chi Minh City, and will cease to operate any Parkson brand department store on the property.

“The proposed disposal is conditional upon the approval of shareholders of PRA, to be obtained at an extraordinary general meeting of PRA to be convened,” said Parkson Holdings.

“The proposed disposal does not have a material impact on the earnings of the Parkson Holdings Group for the financial year ending June 30, 2021 (FY21) and the net assets and the gearing of the group, based on the audited consolidated statement of financial position of the company as at 30 June 2019,” it added.

Shares of Parkson Holdings closed unchanged at 8.5 sen yesterday, valuing the group at RM92.98 million.

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