A major shareholder is looking to privatise the mainboard-listed Japanese retailer

 

PLANS to take Isetan Singapore private via a scheme of arrangement have taken another step forward following in-principle approval from the Singapore Exchange (SGX).

 

In April, Isetan Mitsukoshi, a major shareholder owning 52.73 per cent of Isetan Singapore&rsquo s shares, proposed to take the retailer private at S$7.20 per share &ndash a 37.4 per cent premium over the counter&rsquo s highest closing market price in the past five years.

 

The offer came after Isetan Singapore posted a net loss of S$1.2 million for the full year ended Dec 31, 2023, versus a net profit of S$1.3 million for FY2022.

 

The next steps mainly involve preparing a scheme document, which will contain the report from the appointed independent financial adviser (IFA), directors&rsquo recommendations and valuation reports, Isetan&rsquo s board said in response to shareholder queries at its annual general meeting held in April.

 

On Thursday (Jul 4), the Japanese retailer announced that SGX has no objection to the proposed delisting, subject to several conditions. Later in a separate bourse filing, the company said the court granted leave to convene the scheme meeting.

 

The proposed delisting will have to be in compliance with listing requirements, and be sanctioned by the Singapore High Court. Additionally, the scheme must win majority approval from shareholders (three-fourths in value of those present and voting at the scheme meeting).

 

The appointed IFA, SAC Capital, must also consider the offer fair and reasonable.

 

Timeline

1970: Apollo Enterprises and Isetan Japan incorporate their joint venture Isetan Emporium (Singapore). Isetan Japan and Apollo each hold a 40 per cent stake, and 20 per cent is held by Apollo chairman Chan Chun Ping, a local businessman.

 

1972: Isetan Havelock opens, the first Japanese department store in Singapore. It occupies a four-storey block next to the Apollo Hotel.

 

Isetan Havelock opens in 1972, the first Japanese department store in Singapore. PHOTO: BT FILE

 

Advertisement on Isetan&rsquo s store opening in The Straits Times. PHOTO: BT FILE

1973: Apollo sells its holdings after the store makes a loss. Chan absorbs the 40 per cent stake, increasing his total shareholdings to 60 per cent.

 

1979: Isetan opens its Orchard store at Liat Towers, which occupies three floors and covers a total area of 4,185 square metres (sq m).

 

1980: Isetan Singapore wins a three-year tender to run two shops at Changi Airport selling pewterware, silverware, porcelain and crystal.

 

1981: Isetan Singapore lists on SGX&rsquo s mainboard.

 

1983: The company forays into the suburbs and opens Isetan Katong at Parkway Parade, said to be Singapore&rsquo s largest shopping complex at the time.

 

1984: Isetan Singapore reports its first drop in profit since listing amid reduced consumer spending and severe competition in the retail industry.

 

1986: The company spends S$100 million to relocate Isetan Orchard to Wisma Atria from Liat Towers, marking the first time Isetan purchases space to house its stores.

 

The new store replaces Isetan Havelock as the group&rsquo s flagship store, and overtakes Isetan Katong as its largest store in Singapore. It is also twice the size of its Liat Towers outlet, with a floor area of 8,800 sq m.

 

1988: Isetan Iaunches a 1-for-2 rights issue of 10 million shares to raise S$51 million in order to finance two new speciality stores and repay some bank loans.

 

One of the stores, In, is targeted at fashionable teenage girls. The other store, Inkids, sells toys and educational items.

 

In the same year, the company buys a S$8.5 million office block called Teck Huat Chambers in Havelock Road to be its headquarters.

 

1989: The company issues three million new shares to raise around S$19 million for expansion and investment requirements.

 

1990: The retailer sets up a subsidiary to diversify into interior decoration services.

 

It also buys Seiclene House in Delta Road for S$17.3 million, its second local property market purchase and first foray into industrial properties.

 

1993: Isetan closes its store at Apollo Hotel in Havelock Road to relocate to a space that is three times larger at Shaw House. The new store is called Isetan Scotts.

 

1994: The company closes In and Inkids as they were not profitable. Isetan&rsquo s Wisma Atria outlet undergoes a S$2 million renovation to reposition itself as a mid-price store for locals rather than a branded goods store for tourists.

 

1995: Isetan opens another store at Tampines Mall in the suburbs, leasing around 4,000 sq m of space spanning five floors.

 

1997: The company repositions its store at Wisma Atria to target young consumers.

 

1999: Isetan opens a flagship Mango store at Shaw Centre and sets up its own supermarket, taking over the space it leased to Kimisawa in the basement of Shaw House.

 

2002: German insurer Ergo takes over Wisma Atria&rsquo s office tower and much of its retail space for S$$451 million.

 

2003: The company receives a S$100 million offer from Ergo for its remaining Wisma Atria space that spans 93,000 square feet, sources tell The Business Times. Ergo dismisses the reports as &ldquo market speculation&rdquo .

 

2004: Isetan completes the sale of Seiclene House in Delta Road.

 

2005: The group opens its fourth department store in Jinan, China, paying US$1.2 million for a 45 per cent stake, while Isetan Tokyo owns the rest.

 

2006: Isetan invests in Chengdu Isetan in Sichuan province, marking its second investment in China. It takes a 45 per cent stake in the new department store, while Isetan in Japan holds the remaining stake.

 

2009: Isetan goes online after launching its revamped website.

 

2010: The company opens at Nex Mall in Serangoon Central as it continues to build on its heartland presence.

 

2013: It journeys to the west, opening a department store at Westgate Mall.

 

2015: The company ceases its retailing operations at Wisma Atria and converts space for rental purposes.

 

2019-2020: Isetan decides not to renew the lease for its loss-making store at Westgate Mall after failing to reach an agreement on lease renewal terms. It completes two phases of a major renovation at Isetan Scotts.

 

2022: Isetan Singapore closes its Parkway Parade outlet after the lease expires with no plans to find a replacement store. It finishes the second phase of a major renovation at its store at Nex Mall in Serangoon Central.

 

2023: The group suspends its online business to focus and streamline operations post-pandemic.

 

April 2024: Isetan Mitsukoshi, which owns 52.73 per cent of Isetan Singapore&rsquo s shares, proposes to take the retailer private via a scheme of arrangement.

 

Isetan Singapore says it has no intention to discontinue the retail business in the Republic, and plans to gradually reintroduce its I-Online service later in the year.

 

July 2024: The company receives approval from SGX for the proposed delisting, subject to certain conditions. The court also grants leave for the company to convene a scheme meeting.