As reported by Toyworld, Toys R Us (TRU) Asia now has a new joint ownership structure.
In partnership with Fung Retailing, TRU Asia's parent company TRU Taj LLC's Senior Secured Notes (the Taj Noteholders) agreed to value the business at US$900 million and allowed the Taj Noteholders to acquire 85 per cent of the business.
As part of the deal, Fung retailing increased its share of the business from 15 per cent, to 21 per cent, after acquiring an extra six per cent from the Taj Noteholders, making it the largest shareholder in the company.
The acquisition means that the Asian operation is now separated from the American parent company.
A spokesperson for the Taj Noteholders said that the TRU Asian business is now primed for growth in the region.
“This transaction is a significant step in separating the valuable and growing TRU Asia operation from the rest of the business.
“The company’s growth prospects in Greater China, Japan and Southeast Asia are bright and we are excited about investing in and owning the company in partnership with Fung Retailing.”
Executive director of Fung Retailing, Pieter Schats, said that this partnership firms Fung's commitment to the TRU Asia business.
“Since introducing TRU to Hong Kong in 1986, Fung Retailing has played an integral role in the successful growth and development of TRU in Asia.
“As a sign of the confidence we have in the management team and future success of TRU in the region, we are pleased to increase our shareholding in the Company, reflecting our commitment to support TRU Asia in reaching new heights.”
The business will continue to run under the current leadership team, with Andre Javes serving as the president and CEO.
Javes said that the business remains steadfast in its commitment to being the leading speciality toy retailer in Asia.
“We are committed to remaining the leading specialty retailer of toy, education and baby products in Asia by driving innovation and quality through our products and services.
“The conclusion of the sale process brings clarity to the Company’s ownership and we look forward to strengthening and leveraging our partnerships with our vendors and commercial stakeholders.
“Our shareholders’ investment is a huge vote of confidence in our vision, our team and our winning model.”
The partnership was announced on 16 November.