We attach herewith the announcement made to The Stock Exchange of Hong Kong Limited ("The HKEx") on 8 May 2026 by Parkson Retail Group Limited ("PRGL"), listed on The HKEx and a 54.97% owned subsidiary of Parkson Holdings Berhad ("PHB" or the "Company") in relation to the very substantial acquisition in relation to the renewal of a tenancy in Shanghai, the People's Republic of China ("PRC") ("Property").
On 8 May 2026, PRGL had announced that Shanghai Hongqiao Parkson Development Co., Ltd., an indirect wholly-owned subsidiary of PRGL, had on even date entered into the Shanghai Renewal Agreement with Shanghai Changning Real Estate Management Co., Ltd. in respect of the renewal of the Shanghai Hongqiao Tenancy of the Property for a term from 1 July 2026 to 31 December 2036 ("Shanghai Renewal Agreement").
Pursuant to the International Financial Reporting Standard 16 - Leases, the PRGL Group is to recognise the Property as a right-of-use asset. The entering into of the Shanghai Renewal Agreement and the transactions contemplated thereunder will be regarded as an acquisition of asset by the PRGL Group under the Rules Governing the Listing of Securities on The HKEx ("Listing Rules"), with consideration of approximately Rmb374.5 million (equivalent to approximately RM217.2 million), being the present value of the rent payments under the Shanghai Renewal Agreement ("Acquisition of Asset").
For the purpose of this announcement, an exchange rate of Rmb1.00: RM0.58 is assumed.
The entering into of the Shanghai Renewal Agreement constitutes a very substantial acquisition for PRGL as the highest applicable percentage ratio is more than 100%, and is therefore subject to announcement, circular and shareholders' approval requirements under Chapter 14 of the Listing Rules. In this regard, an extraordinary general meeting of PRGL will be convened to seek its shareholders' approval on the Shanghai Renewal Agreement and the transactions contemplated thereunder.
The Acquisition of Asset does not have a material impact on the earnings of the PHB Group for the financial year ending 31 December 2026 and the net assets of the PHB Group based on the audited consolidated statement of financial position of the Company as at 31 December 2025.