Chinese food and beverage company Master Kong plans to invest nearly CNY2.5 billion to purchase the entire stake in WealthCity from Wei Yingjiao, a major shareholder and executive director of the company, to build an additional operating center in Shanghai.
The new headquarters aims to enhance the image of the group, improve efficiency, and promote international relationships for the company.
Chen Gongru, a spokesperson from Master Kong, told local media that by building the additional operating center in Shanghai, the company plans to establish its dual headquarters structure. It also can help the company to attract talens, be more close to the market, and conveniently promote its cooperation with PepsiCo.
The only asset under WealthCity is reportedly a property development company, whose project covers four office and commercial buildings as well as related supporting facilities. The total construction areas of these buildings are about 140,000 square meters and they are currently undergoing the later stages of development. The construction is expected to be completed by the end of March 2015.
This is reportedly not the first time for Master Kong to set up important management units in Shanghai. In July 2013, the company established a management center in the city.
Headquartered in Tianjin, Master Kong started its businesses in that city. However, with its business expansion, the company has had to consider moving southward and the cooperation with PepsiCo is one of the important reasons for this move. In March 2012, Master Kong and PepsiCo reached a strategic cooperation, and the two parties have developed one of the largest beverage systems in China since then.
In addition, in February 2014, Master Kong announced cooperation with Shanghai Disney Resort, making PepsiCo and Master Kong the primary beverage suppliers of this resort.