October 15, 2013 / 10:09 AM / 4 years ago

Wumart, CP Lotus in $374 mln China supermarket deal

HONG KONG, Oct 15 (Reuters) - Chinese superstore and mini-mart chain operator Wumart Stores Inc has agreed to a HK$2.9 billion ($374 million) deal with CP Lotus Corp that gives it most of its rival's mainland retail outlets and a minority stake in the firm.

Wumart will fund the entire acquisition by issuing 206.6 million shares to CP Lotus, resulting in CP Lotus acquiring a 13.8 percent stake in Wumart, the companies said on Tuesday.

Under the deal, Wumart will also acquire a near 10 percent stake in CP Lotus valued at HK$548 million, they said in a stock exchange filling.

Wumart operated a network of 541 stores in China as of end-June 2013, comprising 145 superstores and 396 mini-marts in China's Beijing, Tianjin, Hebei and Zhejiang. CP Lotus has a network of 57 retail stores, including 54 hypermarkets and two supermarkets in the mainland as at June 30.

$1 = 7.7544 Hong Kong dollars Reporting by Donny Kwok and Denny Thomas; Additional reporting by Elzio Barreto; Editing by Ryan Woo

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