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Temasek makes S$7.2b investment in AS Watson

SINGAPORE — Temasek Holdings has agreed to buy a 24.95 per cent stake in AS Watson in a deal worth around HK$44 billion (S$7.2 billion), giving the Singapore investor a large foothold in Asia’s consumer retail sector.

Foyer area of Temasek Holdings office at The Atrium @ Orchard. Photo: Don Wong

Foyer area of Temasek Holdings office at The Atrium @ Orchard. Photo: Don Wong

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SINGAPORE — Temasek Holdings has agreed to buy a 24.95 per cent stake in AS Watson in a deal worth around HK$44 billion (S$7.2 billion), giving the Singapore investor a large foothold in Asia’s consumer retail sector.

AS Watson is a large retailer with over 10,500 stores around the world.

Its flagship brand, Watsons, operates over 4,000 stores and more than 900 pharmacies in many countries including China, Hong Kong, Taiwan, Macau, Singapore, Thailand, Malaysia, the Philippines and Indonesia.

“With this investment, Temasek has increased its exposure to the consumer retail sector, with a balanced focus on a growing Asia and a recovering Europe,” Temasek said in a statement today (March 21).

Mr Chia Song Hwee, head of Temasek’s Investment Group, said: “The consumer retail sector is a good proxy to growing middle-income populations and transforming economies. This is very much part of our investment themes as we shape Temasek’s portfolio for the long term.”

Hutchison Whampoa, the parent of AS Watson, had been planning to list the firm via an IPO in Hong Kong and London.

That plan has been put on hold although Hutchison said it would plan to list its retail arm at a suitable time in future.

AS Watson’s audited net profit after taxation and extraordinary items for the financial year ended Dec 29, 2013 was around HK$7.8 billion, according to a filing on the Hong Kong Stock Exchange. CHANNEL NEWSASIA

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