Japan's Seibu Department Store is to sell 85 per cent of Hong Kong Seibu Enterprise Co, the upmarket retailer with the flagship department store at the Pacific Place mall, to Dickson Concepts (International) for $180 million.
The deal is expected to lead to further development agreements between Dickson and Seibu in other parts of the region.
Dickson, the retailer and wholesaler which recently spun off its Harvey Nichols operation in London, has struck a deal which will inject $180 million into Hong Kong Seibu by subscribing to 100 million new shares at $1 each and providing a shareholders' loan of $80 million.
Dickson founder and executive chairman Dickson Poon said the agreement was expected to be completed by July 15, and it entitled the company to an exclusive franchise to establish, operate and expand Seibu department stores in both the territory and Guangdong.
Hong Kong Seibu senior managing director Hiroshi Kometani said the sale was not a sign of a lack of confidence in Hong Kong retailing, as the company had been looking for a Hong Kong partner for years.
'We think it would be difficult to develop the markets in Hong Kong and Southeast Asia without any local support,' he said.
'Our partnership will not be limited to just Hong Kong.