Ascendent backs Wumart as Chinese retailer buys CP Lotus stores
Ascendent Capital Partners (ACP) has acquired a stake in Chinese supermarket operator Wumart Stores, as Wumart moves to acquire 36 stores from retail firm CP Lotus Corp. for HK$2.3 billion ($302 million) through a share swap.
According to a regulatory filing, Wumart will gain a stake of about 10% in CP Lotus - which is part-owned by a unit of Thai billionaire Dhanin Chearavanont's Charoen Pokphand Group - worth about HK$2.9 billion.
The deal - which includes stores in Beijing, Shanghai and several provinces - aids Wumart's expansion into Northern China. CP Lotus will retain its 19 outlets in the Guangdong and Hunan regions.
In a separate transaction, ACP will subscribe to 16.6 million new shares in Wumart at HK$14 apiece for HK$232.4 million. An additional 16.6 million could come after completion of the CP Lotus transaction. The shares will have a lock-up period of six months.
CP Lotus' parent, CP Group, was recently reported to be bidding for Hong Kong-based supermarket chain ParknShop, which has been put on the market for at least HK$30 billion.
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