HK's Parkson to buy $35 mln stakes in store operators

HONG KONG, May 23 (Reuters) - Parkson Retail Group Ltd (3368.HK) said it would pay 240 million yuan ($34.57 million) for controlling interests in two department store owners and operators, a move to tap strong growth in China's Nanning and Tianjin cities.

The top Chinese department store operator said it would buy a 70 percent interest in Nanning Brilliant Parkson Commercial Co Ltd and a 100 percent stake in Tianjin Parkson Retail Development Co Ltd from a unit of its controlling shareholder, Parkson Holdings Berhad (PRKN.KL).

The deal will be settled by an issue of 1.994 million new shares, or 0.358 percent of its enlarged share capital, at HK$67.45 each, with the remainder to be paid in cash, the Hong Kong-listed company said. For details please see here

Shares of both the Hong Kong-listed company and its Malaysian holding company were suspended on Thursday pending the announcement.

Shares of Parkson Retail have fallen about 7.7 percent so far this week to close at HK$67.45 on Wednesday prior to a trading suspension. Trading in the shares will resume on Friday. (US$1=HK$7.8=6.942 yuan) (Reporting by Donny Kwok; editing by Ken Wills)