Parkson Retail Group Buys Stake In Subsidiary.

The following news article on Star Business caught my attention. Parkson unit buys 9% stake in Xi’an Lifeng

• Thursday July 3, 2008
  
  Parkson unit buys 9% stake in Xi’an Lifeng
  
  PETALING JAYA: Hong Kong-listed Parkson Retail Group Ltd, a subsidiary of Parkson Holdings Bhd, is acquiring a 9% stake in Xi'an Lucky King Parkson Plaza Co Ltd (Xi'an Lifeng) for 55 million yuan (RM26mil).
  
  It already owns 91% interest in Xi'an Lifeng through wholly owned indirect subsidiary Hong Kong Fen Chai Investment Ltd.
  
  Parkson told Bursa Malaysia that Parkson Retail, via wholly owned indirect subsidiary Golden Village Group Ltd, bought from Wang Lawrence the entire equity stake in Duo Success Investments Ltd, which in turn owned Huge Return Investment Ltd, the holder of the 9% shareholding in Xi'an Lifeng.
  
  Xi'an Lifeng is the owner and operator of two Parkson department stores in Xi'an City, Shaanxi Province.
  
  In addition, it owns a 51% stake in Xi'an Chang'an Parkson Department Store Co Ltd and Xi'an Shidai Parkson Store Co Ltd respectively, which each own and operate one Parkson department stores in Xi'an City.
  
  The remaining 49% stake in Xi'an Chang'an Parkson is owned by Parkson Retail through an indirect subsidiary. On March 27, it has entered into an agreement to buy the remaining 49% stake in Xi'an Shidai Parkson.
  
  Upon completion of the various acquisitions, Parkson Retail will own indirectly 100% interest in four department stores in Xi'an City.

You know the following part is way too complicated for me to decipher.

• Parkson told Bursa Malaysia that Parkson Retail, via wholly owned indirect subsidiary Golden Village Group Ltd, bought from Wang Lawrence the entire equity stake in Duo Success Investments Ltd, which in turn owned Huge Return Investment Ltd, the holder of the 9% shareholding in Xi'an Lifeng.

And since I had blogged on Lion Diversified Acquisition of Subsidiary at RM61.55 million! the other day, this acquisition by Parkson Retail Group makes me wonder why this group of company has a habit of making acquisitions of subsidiaries?!

Don't believe? Here's another recent acquisition. Just in May 2008.

• 23-05-2008: Parkson transfers assets
  by Sharmila Ganapathy
  
  KUALA LUMPUR: Grand Parkson Retail Group Ltd, a 53.52%-owned subsidiary of Parkson Holdings Bhd, is proposing to acquire the entire interest in another Parkson subsidiary Jet East Investments Ltd for RM110.4 million in a combination of cash and new shares.
  
  Parkson told Bursa Malaysia yesterday Parkson Retail was acquiring Jet East from East Crest International Ltd to be satisfied via RM55.2 million cash and the balance RM55.2 million via the issuance of 1.99 million Parkson Retail shares priced at HK$0.10 each.
  
  Parkson Holdings wholly owns East Crest. Jet East owns Victory Hope Ltd, which in turn holds 70% and 100% of the Tianjin Parkson and Nanning Parkson stores, respectively.
  
  Parkson Holdings said the disposal was in line with terms under a deed on non-competition entered into between Parkson Holdings, East Crest and Parkson Retail last September.
  
  The deed provides for a call option exercisable by Parkson Retail on certain unlisted subsidiaries of East Crest in China including the Tianjin and Nanning stores.
  
  It said proceeds from the disposal would be used as working capital and general investments. Prior to its suspension yesterday pending the announcement, Parkson Holdings Bhd shares’ were last traded at RM6.60.
  
  Parkson Retail, which was listed on the Main Board of the Hong Kong Stock Exchange in 2005, manages a large network of Parkson department stores in China.

Won't you agree?

It's like don't they have other BETTER business to do besides having one subsidiary buying yet another subsidiary?

No other business meh?