PARKSON

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OTHERS Announcement by Parkson Retail Group Limited - Discloseable Transaction: Entering into a Tenancy Agreement in respect of a Property in Yichun City, the People's Republic of China

PARKSON HOLDINGS BERHAD

Type Announcement
Subject OTHERS
Description
Announcement by Parkson Retail Group Limited - Discloseable Transaction: Entering into a Tenancy Agreement in respect of a Property in Yichun City, the People's Republic of China
We attach herewith the announcement made to The Stock Exchange of Hong Kong Limited ("The HKEx") on 12 July 2021 by Parkson Retail Group Limited ("PRGL"), a 54.97% owned subsidiary of Parkson Holdings Berhad ("PHB" or the "Company") listed on The HKEx, in relation to the discloseable transaction on the entering into a tenancy agreement as tenant in respect of a property in Yichun City, the People's Republic of China ("PRC") ("PRGL Announcement").

On 12 July 2021, PRGL had announced a discloseable transaction on the entering into a tenancy agreement on 11 July 2021 between Jiangxi Parkson Shopping Centre Management Co., Ltd., an indirect wholly-owned subsidiary of PRGL, and Yichun Hong Lin Hotel Co., Ltd. in respect of the tenancy of the first to fourth floors above ground level of Hong Lin World City, No. 8 Fubei Road, Yichun City, Jiangxi Province, the PRC and some shops situate at the Hong Lin World City ("Property") for a term of 20 years from the Delivery Date (as defined in the PRGL Announcement) ("Term") ("Tenancy Agreement").

Pursuant to the International Financial Reporting Standard 16 - Leases ("IFRS 16") issued by the International Accounting Standards Board, the entering into the Tenancy Agreement as tenant will require the PRGL Group to recognise the Property as the right-of-use assets in which the amount was approximately Rmb92.25 million (equivalent to approximately RM59.70 million) calculated with reference to the present value of the rental payments as discounted using a discount rate equivalent to PRGL's incremental borrowing rate during the entire Term. Thus, the entering into the Tenancy Agreement and the transaction contemplated thereunder will be regarded as an acquisition of assets by the PRGL Group ("Acquisition of Assets").

As the highest applicable percentage ratio in respect of the consideration for the acquisition of the right-of-use assets recognised by the PRGL Group pursuant to IFRS 16 is more than 5% but less than 25%, the entering into the Tenancy Agreement constitutes a discloseable transaction for PRGL, and is subject to reporting and announcement requirements but is exempted from circular and shareholders' approval requirements under Chapter 14 of the Rules Governing the Listing of Securities on The HKEx.

The Acquisition of Assets does not have a material impact on the earnings of the PHB Group for the financial year ending 31 December 2021 and the net assets of the PHB Group based on the audited consolidated statement of financial position of the Company as at 30 June 2020.



Please refer attachment below.

Attachments

PRGL-Announcement.pdf
65.1 kB



Announcement Info

Company Name PARKSON HOLDINGS BERHAD
Stock Name PARKSON
Date Announced 12 Jul 2021
Category General Announcement for PLC
Reference Number GA1-01072021-00018