China Resources Enterprise Limited has announced that it will invest HKD326.6 million to acquire an 80% stake in Pacific Coffee from Chevalier Pacific Holdings Limited and will further expand the cafe chain's business in China.
On the completion of this acquisition, Chevalier will still own a 20% stake in Pacific Coffee.
Chen Lang, managing director of China Resources, said that the company plans to establish Pacific Coffee as the largest cafe brand in China.
According to China Resources, the company currently has 2,900 retail stores in China. If Pacific Coffee opens shops in the same areas, it will not only increase traffic and revenue, but also can promote its growth in the Chinese market.
Founded in 1992, Pacific Coffee currently has 95 coffee shops, including 90 own shops. Of these stores, 83 are in Hong Kong, three in mainland China, four in Singapore, and its five franchises stores are located in Malaysia, Macau, Foshan, and Shenzhen. By the end of March 2010, it had net assets of HKD1.2 million and its after-tax profit was HKD17.6 million over the first three months.