HONG KONG Oct 15 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
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)