Shareholders of Parkson’s HK-listed unit greenlight disposal of commercial properties for RM182 mil

• A resolution pertaining to the disposal was passed by the shareholders by way of a poll at PRG's extraordinary general meeting on Friday (Oct 28), said Parkson in a filing with Bursa Malaysia.

KUALA LUMPUR (Oct 28): Parkson Holdings Bhd’s 54.97%-owned subsidiary, Parkson Retail Group Ltd (PRG), said its shareholders have given their approval for the disposal of commercial properties in Qingdao, China for 280 million yuan (RM182 million).

A resolution pertaining to the disposal was passed by the shareholders by way of a poll at PRG's extraordinary general meeting on Friday (Oct 28), said Parkson in a filing with Bursa Malaysia.

All the shareholders who attended the EGM, who collectively held 1.54 billion PRG shares, voted for the disposal, said PRG in a statement attached to Parkson's filing.

PRG, which is listed on the Stock Exchange of Hong Kong (HKEX), said its total number of issued shares stood at 2.63 billion shares.

Previously on Sept 9, PRG’s 95.91%-owned indirect subsidiary, Qingdao No 1 Parkson Co Ltd, entered into an agreement with Qingdao Haiming City Development Co Ltd to offload the commercial properties — with an aggregate construction area of 76,013 square metres — for 280 million yuan.

PRG had explained that the department stores operating on the properties had been suffering losses due to the weakening spending power of local residents, as well as the adverse effects of Covid-19 mitigation measures on the retail businesses.

“To ensure the continuous operation and improvement of the competitiveness of the department store, it needs to be renovated as a whole and therefore, requires [a] large amount of investment from the group," the company said.

Shares of Parkson finished half a sen or 4% higher at 13 sen, giving the group a market capitalisation of RM143.61 million.