Parkson to get RM300mil earnings boost from HK subsidiary’s unit sale

The second largest Parkson store is officially opened at Vivacity megamall.

KUALA LUMPUR: Parkson Holdings Bhd expects to boost its earnings for the financial year ending June 30, 2017 by RM300mil following its Hong Kong-listed subsidiary Parkson Retail Group Ltd’s (PRGL) “very substantial disposal” of an indirect unit.

In a filing with Bursa Malaysia on Tuesday, Parkson said 54.67%-owned PRGL had announced to the Stock Exchange of Hong Kong Ltd the proposed disposal of Beijing Huadesheng Property Management Co Ltd for 1.67 billion yuan (RM1.03bil) plus the total amount of cash and bank balance in Beijing Huadesheng’s accounts as at the handover completion date and the amount of advanced rental taxes refunded by the Chinese governmental authorities to Beijing Huadesheng.

Beijing Huadesheng is involved in property development and property investment.

An EGM will be convened for PRGL shareholders to consider and, if thought fit, to approve the transactions.