Shares in Singapore's largest retail franchise operator surged 23.5 per cent yesterday after the local press reported Li Ka-shing had bought into the company and might use it as a platform to boost his Southeast Asian presence. Stocks in main board-listed Provisions Suppliers Corp (PSC) jumped two Singapore cents to 10.5 Singapore cents, making it the day's third-biggest gainer. The company did not return calls seeking comment. However, an official with Hutchison Whampoa's AS Watson Group, Mr Li's main retailing vehicle, denied the group was involved with PSC. Yesterday, The Business Times reported Mr Li had earlier this year moved to take control of PSC and could be preparing an assault on the city-state's grocery and provisions market. PSC controls about 10 per cent of the local market through a chain of franchised outlets in many neighbourhoods under the Econ Minimart brand. It also has minor interests in hotels, real estate and resorts. AS Watson personal health-care stores are already in Singapore. The newspaper reported: 'A link with Econ will give it access to 86 per cent of the population living in public housing. 'The unique nature of Econ means that Mr Li can expand the retail network in Singapore with little capital.' PSC was set up in 1974 by PSC Holdings, which in May sold a 27.5 per cent stake to Rich Life for S$52.9 million (about HK$230.12 million). The report said Rich Life was controlled by Hong Kong-listed Hanny Holdings, 28 per cent held by Hutchison. In August, PSC told the Singapore stock exchange Hanny was its largest shareholder. PSC launched its Econ brand in 1982. Store owners pay it to use the name and access PSC's bulk purchasing of supplies. There are about 200 stores island-wide.
