KKR, TPG drop out of ParknShop bidding – report

According to Reuters, the PE firms' offers failed to meet the company's expectations, in a sale expected to fetch $3-4 billion. The highest private equity offer was said to be around HK$20 billion ($2.6 billion).

The PE firms' exit leaves strategic buyers such as China's state-owned China Resources Enterprise, Japan's Aeon and Australia's Woolworths in the running.

Hutchison, controlled by Asia's richest man, Li Ka-shing, received at least seven offers in the first round of bidding in mid-August. The company is said to be exiting the supermarket space so it can focus on its health and beauty retail operations, which boast higher margins and a larger global footprint.

Hong Kong's supermarket industry is estimated to be worth $6.6 billion. ParknShop is said to have generated HK$21.7 billion ($2.8 billion) in revenue last year and EBITDA of HK$1.4 billion.

ParknShop has 345 stores in Hong Kong, mainland China and Macau. In Hong Kong, where 270 of these outlets are based, ParknShop has a 40% market share, dominating the local scene with Wellcome, which is owned by Singapore's Dairy Farm International.

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• Topics
• Greater China
• Buyouts
• Consumer
• KKR
• TPG Capital
• Hong Kong (China)
• Consumer
• buyout