KUCHING: Parkson Holdings Bhd announced that through its wholly-owned subsidiary Parkson Corporation Sdn Bhd (PCSB), has entered into a joint venture agreement with Studio Kingdoms Network Sdn Bhd (SKN) for the purpose of diversifying into the business of operating a theme park, education and nursery centres, food and beverages, and merchandising operations in Malaysia.
The joint venture company will be called Parkson Edutainment World Sdn Bhd and will be held by PCSB and SKN in 70:30 shareholding ratio.
SKN will be responsible for managing the JV company daily operations as it has the relevant expertise.
According to TA Securities Holdinfs Bhd (TA Research), the project will make its mark in Maju Junction Mall, Kuala Lumpur and the total investment shall cost approximately RM11 million, of which PCSB and SKN will provide interest-free loan of up to RM7.8 million and RM2.2 million respectively.
This is on top of an initial paid up capital of RM1 million.
In total, PCSB contribution to the project will be in the region of RM8.5 million (capital contribution of RM0.7 million and RM7.8 million interest free loan) and will be generated from internal fund.
“Having said that, we are not making any changes to our earnings forecast at this juncture,” TA Research said.
“This is pending more guidance from management since no details with regards to start date and duration for completion of the new facilities is available.
“While we are optimistic on the group’s efforts in looking for new business opportunities to strengthen its earnings base and diversify from the core retail business, we continue to foresee near term earnings to be impacted by an overall slowdown in spending.”
The primary business activities will include the operation of a theme park, education and nursery centres, food and beverages and merchandising operations.
The theme park will be operated within shopping malls in Malaysia and will feature up to 35 “Happy Toon World” characters from the United States.
The education centers shall feature the “Pygmalion” teaching technique, which originates from Japan.
This teaching method helps to improve children’s brain development and enhance their problem solving skills, creativity, and memory.
Children between 30 months and 6 years are the target market.
The nursery will be named “Zensyo Maireya Nursery School”, which also comes from Japan.
This nursery helps to cater for busy parents, and operates as a child care centre and at the same time helps to improve children’s discipline and knowledge.