GS Retail to spin off Parnas Hotel to enhance corporate, shareholder value

[Courtesy of GS Retail Co.]

GS Retail Co. announced on Monday that it has decided to spin off its hotel and meat processing businesses into a separate entity to enhance corporate competitiveness and shareholder value.

GS Retail held a board meeting on Monday and approved the plan to create a new entity tentatively named Parnas Holdings, which will house Parnas Hotel and Fresh Meat, currently subsidiaries of GS Retail.

The spin-off date is set for December 26, with the division ratio determined at 0.8105782 for GS Retail and 0.1894218 for Parnas Holdings.

The newly formed company is expected to be listed on January 16, 2025. Shareholders will receive shares in both the existing and the new company proportional to their current holdings.

The proposal will be finalized at the shareholders’ meeting on November 6, with the record date for shareholders set for September 1.

GS Retail explained that despite strong performances across its convenience stores, home shopping, supermarkets, and hotels, the complex business structure has led to an undervaluation compared to competitors.

By separating the businesses, GS Retail aims to streamline its operations, focusing on retail, while Parnas Holdings will concentrate on the hotel and food processing sectors.

Previously, GS Retail has taken steps to strengthen its core business by discontinuing underperforming segments such as the Lalavla drugstore brand and GS Fresh Mall.

The company also announced plans to retire 1,279,666 shares, or 1.2 percent of the total, in addition to the spin-off plan to enhance shareholder value. Both companies intend to maintain a dividend payout ratio of over 40 percent post-division.