MUI ... Oct 08

Tan Sri Khoo Kay Peng controls 60.7% of Laura Ashley, 35.17% of it through MUI.

Tan Sri Khoo Kay Peng who owns the HK’s Laura Ashley retail chain, and Robert Kuok, who has a strong network in China, may join forces to penetrate China’s retailing market.

It is worth nothing that Kuok’s Kerry group Ltd bought a 3.41% stakes or Rm25 million in Khoo’s UK listed Laura Ashley Holdings plc in Sept 2008.

Observers say Kuok could play a major role in helping Laura Ashley, a home furnishing and women’s wear outfit, expanding in China’s fast growing retail market.

In an announcement stated in Ashley’s interim results hinted at such a possibility. Laura Ashley said its Asian franchise partner has major plans to develop the china market where it has been agreed that 80 stores will be opened over the next five years. Under the franchise system, Laura Ashley need not commit itself to invest in new store openings and operations in China, which will be done by the franchiser.

Thus Kerry Group’s purchase of a small stake in Laura Ashley could signal the group’s return to the retail business.

Almost 80% of Laura Ashley’s total turnover came from the UK, where the company has 225 stores. Nevertheless, the UK market is saturated. The right tonic for Laura Ashley now is to look to China for the kind of fast growth.