Hong Kong-listed China Resources Enterprise Limited has announced that it will exchange assets with its parent company, China Resources Group.
Under the exchanges, China Resources Enterprises will gain 75 Home World hypermarkets as well as a brewery in Shandong from China Resources Group; in return, it will hand over its non-core businesses of textiles and container terminals. In addition, it will pay a price difference of HKD30 million to its parent company.
In March 2007, the Chinese mainland hypermarket operator Home World was fully acquired by China Resources Group and was renamed as China Resources Vanguard. Home World is currently operating the Vanguard brand hypermarkets in the northern, western, and northeastern areas of China.
According to China Resources Enterprises, as of the first half of 2009, the company was operating 109 hypermarkets, but it had not opened any outlets in the northwestern or the northeastern areas of China. With the asset exchanges, the company will gain 75 new hypermarkets, which will benefit its multi-model development.