China's Quanjude has announced that it has signed an agreement to acquire a 85% stake in Xinjiang Quanjude from Xinjiang Junbang Investment Company Limited.
Referring to the assessed value, Quanjude should pay CNY138.38 million to Junbang Investment for this equity transfer transaction.
Junbang Investment reportedly held a 100% stake in Xinjiang Quanjude and it is a brand franchisee of Quanjude in Xinjiang with two Quanjude roast duck stores in the region.
As of October 31, 2010, the total assets of Xinjiang Quanjude reached CNY120.861 million, its liabilities CNY15.682 million, and its net asset CNY105.179 million. After assessments, its total assets were valued at CNY130.512 million, liabilities CNY15.682 million, and its net asset CNY114.83 million. As of October 2010, Xinjiang Quanjude had made a profit of CNY2.857 million and its net profit was CNY2.143 million.
Quanjude said that this transaction will play an active role in accelerating its strategic acquisitions across China to expand its business scale. Meanwhile, the government's great concern of Xinjiang development indicates a bright future for this region. Quanjude will rely on Xinjiang Quanjude to seize this great opportunity to develop its northwest market.