Couche-Tard acquires Circle K business in Hong Kong
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Convenience Retail Asia Ltd said on Thursday it had agreed to sell its convenience store business in Hong Kong to Canadian convenience store and road transportation fuel retailer Alimentation Couche-Tard Inc for HK$2.79 billion ($359.8 million).
The Circle K convenience stores and Saint Honore bakery chain operator plans to declare a special dividend of HK$3.85 per share to its shareholders, with the dividend to be paid before the end of 2020, the firm said in a filing to the Hong Kong bourse.
The convenience store business, with a net asset value of HK$622 million as of end-June 2020, comprises of 340 Circle K stores in Hong Kong, and the net proceeds will be used to pay the special dividend, the Hong Kong-listed firm added.
Questions & Answers
Q.What is the total value of this acquisition in Hong Kong dollars?
What is the total value of this acquisition in Hong Kong dollars?
The acquisition of the Hong Kong convenience store business by Couche-Tard is valued at HK$2.79 billion.
Q.What business operations are included in the sale to Alimentation Couche-Tard?
What business operations are included in the sale to Alimentation Couche-Tard?
The sale includes 340 Circle K convenience stores in Hong Kong, and the Saint Honore bakery chain operations.
Q.What is Convenience Retail Asia Ltd's plan for the net proceeds from the sale?
What is Convenience Retail Asia Ltd's plan for the net proceeds from the sale?
Convenience Retail Asia Ltd intends to use the net proceeds from the sale to pay a special dividend of HK$3.85 per share to its shareholders.
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