KUALA LUMPUR (July 29): Parkson Holdings Bhd is divesting its remaining 30% equity stake in its wholly-owned hire purchase unit, Parkson Credit Sdn Bhd, to Hong Kong-listed subsidiary Parkson Retail Group Ltd for RM26 million in cash.  

In a filing with Bursa Malaysia, Parkson Holdings said it is selling the stake (held via wholly-owned subsidiary Parkson Credit Holdings Sdn Bhd) to Parkson Retail’s wholly-owned subsidiary Oroleon (HK) Ltd.  

As a result, Parkson Holdings’ effective interest in Parkson Credit will be diluted to 54.97% from 68.48%, resulting in a lower future earnings contribution from the latter.  

Parkson Credit’s principal business is the provision of Islamic and conventional financing for consumer durables and motorcycles in Malaysia, through authorised dealers. For the 18-month period ended Dec 31, 2019, Parkson Credit posted a profit after tax of RM13.13 million. 

Meanwhile, Parkson Holdings also owns a 54.97% stake in Parkson Retail. 

Prior to 2018, Parkson Holdings had disposed of a 70% stake in Parkson Credit to Parkson Retail for RM49 million.  

Parkson Holdings’ share price closed 0.5 sen or 5.56% lower at 8.5 sen today, giving it a market capitalisation of RM90.71 million. Some three million shares were traded.