Parkson to expand operations in Indonesia with joint venture

KUALA LUMPUR: Parkson Holdings Bhd (PHB) is planning a collaboration with Indonesia based PT Mitra Samaya (MS) for the expansion of departmental stores and supermarkets in Indonesia.

East Crest International Limited (ECI), a wholly-owned subsidiary of PHB has entered into a conditional joint venture agreement (JVA) with MS and Parkson Retail Asia Pte Ltd (Parkson Asia), a wholly-owned subsidiary of ECI on April 8, it said in a Bursa announcement on the same day.

The purpose of the JVA is to combine the Malaysian and Vietnamese retail business of PHB with the Indonesian retail arm PT Tozy Bintang Sentosa (TBS).

The proposed collaboration involves the acquisition of PT Tozy Sentosa (TS), a subsidiary of TBS by Parkson Asia and its wholly-owned subsidiary Centro Retail Pte for about USD13 million. Upon completion of the acquisition, MS will subscribe for shares in Parkson Asia, becoming a 9.9% shareholder of Parkson Asia.

PHB cited the growing Indonesian GDP and overall private consumption as reasons for the expansion.