Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Companies / News/  Temasek weighs options for stake in retailer A.S. Watson
BackBack

Temasek weighs options for stake in retailer A.S. Watson

Temasek is working with an adviser to consider possibilities for its 25 percent holding in A.S. Watson after receiving some preliminary interest, according to the people, who asked not to be identified because the information is private.

Temasek has received preliminary interest for its 25% stake in global retailer A.S. Watson Group. Photo: BloombergPremium
Temasek has received preliminary interest for its 25% stake in global retailer A.S. Watson Group. Photo: Bloomberg

Singapore state investment firm Temasek Holdings Pte is exploring options for its stake in global retailer A.S. Watson Group, including a partial sale, people with knowledge of the matter said.

Temasek is working with an adviser to consider possibilities for its 25% holding in A.S. Watson after receiving some preliminary interest, according to the people, who asked not to be identified because the information is private. It bought the stake in A.S. Watson, which is a unit of Hong Kong tycoon Victor Li’s CK Hutchison Holdings Ltd., for HK$44 billion ($5.6 billion) in 2014.

At the time, A.S. Watson’s owner said it planned to list the retailer in the next two to three years in Hong Kong and Singapore, pushing back an earlier 2014 target for an initial public offering.

“Temasek bought A.S. Watson on the expectation that it would go public soon," Steven Leung, executive director at UOB Kay Hian (Hong Kong) Ltd., said Monday by phone. “Now that the IPO hope is fading, it’s understandable why Temasek seeks to sell down its stake."

Deliberations are at an early stage, and there’s no certainty they will lead to a transaction, the people said. A spokesman for the Singapore state investment firm said Temasek doesn’t comment on rumors or speculation. A representative for CK Hutchison declined to comment.

A.S. Watson accounted for 37 percent of CK Hutchison’s HK$224.5 billion of revenue for the six months ended June, the most of any division, its interim report shows. Its health and beauty businesses helped the unit’s sales rise 14 percent year on year, according to the report.

The retailer has more than 14,500 stores in 24 markets, including its Superdrug chain in the U.K. and Rossmann pharmacies in Germany, according to its website. It also runs the Watsons chain of health-care and beauty shops across Asia, as well as groceries, electronics shops and wine stores in its home market of Hong Kong.

This story has been published from a wire agency feed without modifications to the text.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 07 Jan 2019, 11:40 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie