Eslite Group (誠品集團) — a local conglomerate that runs various cultural and lifestyle brands such as bookstores, galleries and shopping centers — announced a restructuring with the establishment of a holding company and a new subsidiary on Wednesday.
The group said the move would allow better management of its various businesses and pave the way for the future listing of the subsidiary.
The group set up a holding company to manage all business entities under the group, while the new subsidiary called Eslite Life (誠品生活) is dedicated to running only the food and beverage, shopping centers and real estate businesses.
Eslite Life is capitalized at NT$410 million (US$12.8 million), with a 75 percent stake controlled by the holding firm and 25 percent by the group’s shareholders.
The group said food and beverage, shopping centers and real estate are more profitable than its flagship division Eslite Bookstore (誠品書店), so they are grouped under Eslite Life in preparation for future public listing.
The holding company, which has NT$970 million of capital, will mainly supervise other businesses including bookstore chains, galleries, expositions, media and logistics divisions.
Group chairman Robert Wu (吳清友) will continue to chair both the holding firm and Eslite Life.
Wu said late last month that the group aims to bring its popular Eslite Bookstore to Hong Kong, with the redeveloped Central Market tentatively slated for its first outlet.
However, the plans are being hindered by high rent and limited space there.
Hong Kong Financial Secretary John Tsang (曾俊華) on Sunday welcomed Eslite Bookstore to establish a presence in the territory during his visit to Taiwan.
He said that Hongkongers need a bookstore brand like Eslite Books.
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