Friday, November 13, 2009

Lion Diversified cuts stake in Parkson

Lion Diversified cuts stake in Parkson. Between April and June 2009, Lion Diversified Holdings’ (LDH)Excel Step Investment disposed of 18.5m Parkson Holdings (PHB) shares in the open market for RM86.5m. Subsequently, LDH had from 26 June to 19 Oct further disposed of a total of 36,740,100 PHB shares, representing 3.62% of the issued and paid-up capital of Parkson, for a total cash consideration of RM185.8m. Hence, LDH and Excel Step Investment have disposed of a total of 5.44%, reducing LDH’s stake in PHB to 5.6%, including the 57.2m shares that are convertible from Redeemable Convertible Secured Loan Stocks of RM228.8m. The rationale of the PHB share disposals by LDH is to pare down its borrowings and for working capital requirements, and has nothing to do with Parkson. In fact, management has been guiding that LDH would realize the shares at the appropriate time. According management, LDH still holds < 1% of the issued and paid up capital of Parkson and has no plans to place out its 57.2m convertible shares currently.