QIA Seeks $665 Million Exiting Asia Department Store Investments

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(Bloomberg) -- Qatar Investment Authority, the sovereign fund pursuing asset disposals globally, is seeking to raise $665 million selling its holdings in Hong Kong retailer Lifestyle International Holdings Ltd. and its China affiliate.

QIA is offering 371.1 million Lifestyle International shares, or a 23 percent stake in the company, at a fixed price of HK$12 apiece, according to terms for the deal obtained by Bloomberg. The offer price represents a 3.8 percent discount to Lifestyle International’s last close, the terms show.

The sovereign fund first invested in Lifestyle International, which runs Sogo department stores, in 2014. QIA has already been reducing its direct holdings in Credit Suisse Group AG and Tiffany & Co. It’s considering selling more assets and channeling the proceeds back into its domestic market, people with knowledge of the matter said in October.

QIA is concurrently offering 371.1 million shares of Lifestyle China Group Ltd. at HK$2.03 each, according to the terms. The offer price represents a 4.7 percent discount to the company’s last close.

Thomas Lau, the controlling shareholder of both companies, has committed to purchase 280 million Lifestyle International shares and 186 million Lifestyle China shares, the terms show. The remainder will be offered to third-party investors, with Lau agreeing to buy any unsold stock. UBS is sole bookrunner for the offerings.

Shares of Lifestyle International and Lifestyle China were halted from trading in Hong Kong on Tuesday. No reasons were immediately given.

©2018 Bloomberg L.P.

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