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Singapore’s Temasek to acquire stake in AS Watson for USD5.7b

Singaporean investment company Temasek is acquiring 24.95 percent equity stake in international health and beauty retailer A.S. Watson for USD5.7 billion.

With the investment, the company said it is increasing its exposure to the consumer retail sector and in Asia.

"The consumer retail sector is a good proxy to growing middle income populations and transforming economies. This is very much part of our investment themes as we shape Temasek’s portfolio for the long term,” said Chia Song Hwee, Head of Investment Group in Temasek, in a news release.

A.S. Watson, owned by Hong Kong billionaire Li Ka-shing’s Hutchison Whampoa Limited (HWL), has over 10,500 stores operating 14 retail brands in 25 markets worldwide. Its flagship brand Watsons operates over 4,000 stores and more than 900 pharmacies, including those in 9 Asian markets, namely China, Hong Kong, Taiwan, Macau, Singapore, Thailand, Malaysia, the Philippines and Indonesia.

After the completion of the transaction in April 2014, HWL said it will have an equity interest of 75.05 percent and will retain control of A.S. Watson Holdings.

"“We are pleased to have Temasek, a renowned international investor, as our long-term partner. This demonstrates their confidence in the growth opportunities and prospects of our retail businesses," said Hutchison Whampoa Group Managing Director Canning Fok.