City Super supermarket chain sale sparks strong interest
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Investment groups China Resources and Yonghui Superstores, as well as some private individuals, are among potential buyers of Hong Kong’s City’Super high-end grocery chain.
Current owner The Fenix Group is intending to sell a majority stake in the business in a deal that could attract US$300–400 million. The firm is likely to call for bids later this month or otherwise in early April, depending on the coronavirus outbreak situation at the time.
Billionaire Peter Woo, who owns a minority stake in the business, is expected to hold on to his shares. Talks, however, remain at early stages and the deal may not eventually go ahead.
City Super Group currently operates 21 Hong Kong City’Superstores, with an additional seven in Shanghai and another seven in Taiwan under different brand names. The stores are located in prime properties such as Hong Kong’s IFC Mall.
Questions & Answers
Q.Which parties are reportedly interested in acquiring City Super?
Which parties are reportedly interested in acquiring City Super?
Investment groups China Resources and Yonghui Superstores are potential buyers. Also, some private individuals have also shown interest in the high-end grocery chain.
Q.How many stores does City Super Group currently operate in total across its various locations?
How many stores does City Super Group currently operate in total across its various locations?
The group operates 21 stores in Hong Kong. There are also seven stores in Shanghai and seven in Taiwan, bringing the total to 35 stores.
Q.When might the formal bidding process for City Super begin?
When might the formal bidding process for City Super begin?
The firm is likely to call for bids later this month or potentially in early April. The timing depends on the coronavirus outbreak situation at the time.
Q.Is the current minority stakeholder, Peter Woo, expected to sell his shares as part of this deal?
Is the current minority stakeholder, Peter Woo, expected to sell his shares as part of this deal?
No, billionaire Peter Woo, who currently owns a minority stake in the business, is expected to retain his shares rather than selling them.
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