ParknShop no longer for sale

Hutchison will focus on growth in China instead.

Hutchison Whampoa, Ltd said it has cancelled plans to sell its Hong Kong supermarket chain, ParknShop. If it had pushed ahead, the sale could have fetched some US$3 billion to US$4 billion.

It noted that after completing an initial strategic review with advisors Goldman Sachs and Bank of America Merrill Lynch, it has concluded that a sale of ParknShop by way of a private market transaction will not deliver maximum value to company shareholders.

Hutchison has decided not to pursue a private sale of ParknShop at this time but “. . . will continue to implement an accelerated growth strategy with a particular focus in Mainland China.”

It has also decided to expand its strategic review process to include all options for maximizing the value and future growth potential of its health and beauty retail business, A S Watson & Co. ParknShop is the second largest grocery store chain in Hong Kong with a 19% market share. It has 345 stores in Hong Kong, Macau and southern China and had revenues of US$2.8 billion in 2012.