HONG KONG: Qatar Investment Authority (QIA) and Hong Kong’s Lau family are considering options, including a full takeover of department store operator Lifestyle International Holdings Ltd, after the sovereign wealth fund bought a minority stake, according to people with knowledge of the matter.
QIA and Thomas Lau, Lifestyle’s chief executive officer and largest shareholder, see more value in the US$2.9 billion (RM9.5 billion) company by taking it private, the people said.
QIA yesterday agreed to buy 19.9 per cent of Lifestyle, the owner of Sogo department store, for about HK$4.78 billion (RM2 billion). A full takeover offer isn’t imminent, the people said.
The sovereign fund is expanding its portfolio into Asia, adding to luxury consumer investments, including the Harrods department store in London and a 12.6 per cent stake in jewellery retailer Tiffany & Co.
Its investment in Lifestyle marks QIA’s first major acquisition in Asia.
QIA bought the stake from Real Reward Ltd, which is equally owned by Lau and Hong Kong billionaire Cheng Yu-tung’s Chow Tai Fook Enterprises Ltd.
QIA is now Lifestyle’s second-largest shareholder while Thomas Lau controls 29.7 per cent following QIA’s purchase, including a 13.55 per cent direct stake.
QIA, which has investments in banks, including Barclays Plc and Credit Suisse Group AG, will have a non-executive director on the board of Lifestyle as part of the deal, which will be completed in two days, Lifestyle said.
Lifestyle trades at 10.8 times estimated full-year earnings, while competitor Parkson Retail Group Ltd trades at 13.3 times and Intime Retail Group Ltd at 13 times. Bloomberg