HONG KONG Feb 1 Chinese department store operator PCD Stores (Group) Ltd said Beijing Wangfujing International Commercial Development Co Ltd has launched a takeover bid with the planned purchase of a 39.53 percent stake for HK$1.997 billion ($257.49 million), giving rise to an obligation to make a general offer.
Beijing Wangfujing is the controlling shareholder of Beijing Wangfujing Department Store (Group) Co Ltd, which operates around 30 department stores across China. Buying PCD Stores would significantly expand its footprint in China's fast-growing retail market.
In a filing to the Hong Kong bourse late on Thursday, PCD Stores said Beijing Wangfujing would buy 1.66 billion existing PCD Stores shares from the company's major shareholders, Bluestone Global Holdings Ltd and Portico Global Ltd, at HK$1.20 each, a 10 percent premium to the previous close.
Completion of the deal is subject to approval from relevant Chinese authorities.
PCD Stores operates 16 department stores and 3 outlet malls in Beijing and other 7 provinces in the mainland. ($1 = 7.7555 Hong Kong dollars) (Reporting by Donny Kwok; Editing by Stephen Coates)