HONG KONG Aug 27 KKR & Co and TPG Capital are
out of the running in the auction for Hutchison Whampoa Ltd's
Hong Kong supermarket chain ParknShop, people close to
the matter told Reuters, after their offers failed to meet the
The loss of two large private equity firms is a blow to the
auction's competitive tension, though several other companies
appear to remain in the process.
Hutchison, controlled by Asia's richest man Li Ka-shing,
received at least seven offers in the first round of bidding,
which were submitted in mid-August. Hutchison expects to fetch
between $3-4 billion from the sale, Reuters previously reported,
after launching a strategic view of the business. [ID:
The highest private equity offer was around HK$20 billion
($2.6 billion), one of the people said.
The status of the other bidders in the auction, which a
previous Reuters article said includes conglomerate China
Resources Enterprise Ltd, Japan's Aeon Co Ltd
and Australia's Woolworths, was not immediately clear.
Established in 1973, ParknShop held a 40 percent share of
the Hong Kong market for supermarkets for the year to June,
according to Nielsen Homescan, with Dairy Farm on 33 percent.
ParknShop generated HK$21.7 billion ($2.8 billion) in
revenue last year and earnings before interest, tax,
depreciation and amortisation (EBIDTA) of HK$1.4 billion,
another person familiar with the matter has previously told
Hutchison, KKR and TPG were not available
for immediate comment.