Parkson Retail Asia said it has agreed to acquire a 41.8% stake, or a total of 60.63 million shares in Colombo Stock Exchange-listed Odel PLC, a leading lifestyle fashion brand and retailer in Sri Lanka, for LKR1,424.7 million ($13.6 million) or LKR23.50 per share.
The proposed acquisition is expected to be completed around the end of July or beginning of August 2012 and will comprise the purchase of 60.625 million shares of Odel from the Gunewardene family, who are the founding members and majority shareholders of Odel.
Parkson Retail Asia is a Southeast Asia-based department store operator with an extensive network of 54 stores (including one supermarket) as at 30 June 2012, spanning 553,695 sqm of retail space across cities in Malaysia, Vietnam and Indonesia.
Commenting on the acquisition, Managing Director of PRA, Datuk Alfred Cheng, said, “Sri Lanka has always been an attractive proposition, as an emerging market with its rising income per capita and growing middle class. As an established retail brand in Sri Lanka, Odel is already very well-positioned to tap into the fast-growing middle class population. With Parkson’s investment, experience and network, Odel is well poised to harness the growth of the retail industry in Sri Lanka. This could set the stage for us to work together for expansion into the neighbouring countries of Bangladesh, Pakistan and India over time.”
Odel first started as a car boot venture with Otara Gunewardene, CEO of Odel, selling clothes to her family and friends. Over the years, it has grown through its provision of unparalled full-service retail experience into a retail chain of 17 stores spread over 150,000 sq ft of retail space in Sri Lanka with online shopping as well, sustaining its position as a trend setting retailer in Sri Lanka.
In 2011, Odel was conferred membership of the Intercontinental Group of Department Stores which includes Parkson, Selfridges, Saks 5th Avenue, Printemps, M&S and Woolworths among its members.
Odel’s group revenue grew 15%, from LKR3,308 million for the financial year 2011 to LKR3,819 million for the financial year 2012.
No comments:
Post a Comment