 "Temasek buys 25% in Watson for $5.7 billion")
Singapore's government's investment arm Temasek holdings on Friday said it has agreed to invest $5.7 billion (Rs 34,700 crore) for a 24.95% equity stake in Hong-Kong based beauty chain AS Watson (ASW). The deal values the 186-year old niche retailer, which plans to open over 1,200 stores this year, at over $20 billion (Rs 1.22 lakh crore), and has indefinitely put off ASW's IPO plans. ASW is part of Hong Kong billionaire Li Ka Shing's Hutchison Whompoa group.
Temasek in a statement said the international health and beauty retailer has over 10,500 stores operating 14 retail brands in 25 markets worldwide, and called it the "largest" in the segment.
ASW's flagship brand Watsons operates over 4,000 stores and more than 900 pharmacies, including those in nine Asian markets, including China, Hong Kong, Singapore, Thailand, Malaysia, the Philippines and Indonesia.
"We continue to believe in the growth opportunities and long term prospects of Asia, particularly China, and a recovering Europe," added Chia, who is also Temasek's co-head for China.
Started in 1828, as a small dispensary to provide free medical services to the poor people of the southern Chinese province of Guangdong (also known as Canton), ASW has evolved to become the largest international health and beauty retailer in Asia and Europe with stores across 34 markets.
The group has one of the world's largest portfolio of retail formats, retail brands and geographical presence. Proudly supported by a global family of over 100,000 staff, the ASW website said. Hutchison Whampoa Limited, has major interests in ports and related services; property and hotels; retail; infrastructure; energy and telecommunications in 52 countries.
Temasek in a statement said the international health and beauty retailer has over 10,500 stores operating 14 retail brands in 25 markets worldwide, and called it the "largest" in the segment.
ASW's flagship brand Watsons operates over 4,000 stores and more than 900 pharmacies, including those in nine Asian markets, including China, Hong Kong, Singapore, Thailand, Malaysia, the Philippines and Indonesia.
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Chia Song Hwee, Head of Investment Group in Temasek said, "We are very pleased with the opportunity to be a long term partner with Hutchison Whampoa Limited through our investment in AS Watson. We share their philosophy to invest and build businesses for the long term, especially in Asia. AS Watson is a well-established company with a proven management team, a valuable franchise and a good growth story. 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."
"We continue to believe in the growth opportunities and long term prospects of Asia, particularly China, and a recovering Europe," added Chia, who is also Temasek's co-head for China.
Started in 1828, as a small dispensary to provide free medical services to the poor people of the southern Chinese province of Guangdong (also known as Canton), ASW has evolved to become the largest international health and beauty retailer in Asia and Europe with stores across 34 markets.
The group has one of the world's largest portfolio of retail formats, retail brands and geographical presence. Proudly supported by a global family of over 100,000 staff, the ASW website said. Hutchison Whampoa Limited, has major interests in ports and related services; property and hotels; retail; infrastructure; energy and telecommunications in 52 countries.