Convenience Retail Asia, the exclusive investor of the Circle K brand in mainland China, has announced plans to acquire 100% of the stake of Hong Kong-based Saint Honore Cake Shop for HK$632 million.
Convenience Retail Asia says that it values Saint Honore's food manufacturing business and its distribution resources, and hopes to strengthen OK Convenience Storess operation through this acquisition.
After the acquisition, Saint Honore will withdraw from Hong Kong Stock Exchange market and become a wholly-owned subsidiary of Convenience Retail Asia.
Feng Guojing, chairman of Convenience Retail Asia, says that this transaction will benefit both sides. He explains that food has always been the essential business in Circle K convenience stores in mainland China. The value awareness and cake business of Saint Honore will help strengthen the entire operation of Circle K convenience stores and support its operation in mainland China.
Convenience Retail Asia has also indicated its intention of speeding up expansion in Guangzhou, Dongguan and Shenzhen.
Founded in 1972, Saint Honore operates more than 70 retail outlets.