KUALA LUMPUR: Astro Malaysia Holdings Bhd is venturing into the home shopping business in Malaysia via a joint venture with South Korea's GS Home Shopping Inc.
The pay-TV operator said on Tuesday its unit Astro Retail Ventures Sdn. Bhd had inked a shareholders agreement with GS Home to set up a JV company Astro GS Shop Sdn Bhd.
"The total capitalisation of Astro GS Shop will be RM70mil (to be contributed by Astro Retail and GS Home in the proportion of the shareholding ratio of 60:40 respectively) in several tranches," it said.
Astro GS Shop intends to carry out home shopping business through various platforms including but not limited to TV home shopping, Internet shopping and mobile shopping, it said.
Astro said the group was uniquely positioned to leverage and harness its strengths and gain, from a wide array of synergies by entering the home shopping business.
The factors included its customer base of 3.8 million TV homes in Malaysia which provides a retail reach of some 17 million consumers, unmatched by any physical retail chain stores.
"Many more consumers are expected to benefit from the convenience of related Internet and mobile shopping," it added.