Friday, November 2, 2012

AEON: It is not right

The decision to manage the purchased Carrefour Malaysia separately from AEON Malaysia is not a good decision. As a shareholder, how do we see it...

Firstly, there is a 51% owned AEON Malaysia managing the supermarket. And then the 100% owned AEON Big (now that it is going to be called) will be managed from AEON Ltd, Japan.

Synergy in terms of purchasing power is one thing. Competing against its own chain where there are nearby locations is a whammy. Just a scenario, what do you think the staffs and management of AEON Malaysia will feel and do? What do you think the shareholders will feel?

It does not go well with transparent decision making as well.

I have overlooked this matter and because of today's decision have decided to sell all the AEON shares.


Thanks to readers for highlighting.

3 comments:

山下聖人 said...

Hi,selling AEON now I think a good decision. Since AEON BIG not going inject into AEON.

I'm watching Glomac now, any analysis you done before on this?
I actually agree with most of your analysis.

Perisai and Parkson are another 2 companies I buy and analyse recently

Woon Shong Chai said...

having both AEON and AEON BIG competing each other doesn't make any sense.

AEON has the financial capability to absorb AEON Big, will merger possible in the future?

felicity said...

Anything is possible. However, if I am not mistaken for operations of hypermart, there is a need for 30% local holdings. Not sure whether this condition still applies.