2017-07-10

Taroko (1432) and Shin Kong Mitsukoshi launched an indicative strategic cooperation project
The Taroko Development will split Kaohsiung Caoya Road Shopping Center and transfer 60% of the equity interest to Shin Kong Mitsukoshi

(Taipei, July 10) Taroko (1432) today announced a letter of intent with Shin Kong Mitsukoshi Department Store for a strategic partnership. It will jointly enter the field of experiential shopping mall operation by dividing the equity interest of the independent Kaohsiung Caoya Road Shopping Center under the Taroko Development Company and transferring 60% of the equity interest to Shin Kong Mitsukoshi. Hsieh, Kuo-Tong, General Manager of Taroko, said, “Shin Kong Mitsukoshi is a leading department store industry in nation with strong investment promotion and shopping mall operation capabilities, and Kaohsiung Caoya Road is an indicative brand of cross-strait experiential shopping malls, through this cooperation project, the introduction of Shin Kong Mitsukoshi’s advantageous resources will greatly reduce the operating costs of Caoya Road, enhance its profitability, and make Caoya Road truly become a new landmark in southern Taiwan.”
The old Taroko Development Company is expected to apply for a spin-off into two companies to continue operations, the old Taroko Development will be mainly operated by Kaohsiung Caoya Road Shopping Center, and the new Taroko Development Company will be mainly based on the shopping mall operation business of Taichung Taroko New Era and Taroko Square (Hsinchu). Taroko is expected to transfer 60% of the equity interest in Kaohsiung Caoya Road Shopping Center after the division of the subsidiary, Taroko Development Business, to Shin Kong Mitsukoshi, with an estimated total transfer amount of approximately NT$1.17 billion. The cooperation proposal has been approved by the board of directors today, and a letter of intent for equity sale cooperation has been signed.
Taroko will deepen sports and leisure and experiential commerce, and accelerate cross-strait experiential service business opportunities with an asset-light model
With the formation of this strategic cooperation plan, Taroko will focus on the strategic development policy of light assets and heavy operation, and deepen cross-strait sports and leisure and experiential business. Starting from the Kaohsiung-Kaohsiung Caoya Road Cooperation Project, in the future, Taroko and Shin Kong Mitsukoshi will also discuss how to jointly develop cross-strait experiential commerce and jointly create differentiated competitive advantages in the market.