Dairy Farm International Holdings Ltd. announced that its acquisition of 19.99% stake in Yonghui Supermarket officially obtained regulatory approvals in China.
In August 2014, Dairy Farm International and Yonghui Supermarket signed an acquisition agreement, under which Dairy Farm International would purchase 813 million Yonghui shares at the price of CNY7 per share. With the acquisition, Dairy Farm International will gain a 19.99% stake in Yonghui Supermarket and pay USD908 million for the deal. The transaction was subject to the approvals of Yonghui's shareholders and the Chinese regulatory units at that time.
Dairy Farm International recently said that the investment officially obtained regulatory approvals in China and the company is expected to close the deal in one month.
It is said that Yonghui Supermarket will use the investment to open additional retail stores, improve information and e-commerce business platform, and build food processing and development center and food safety monitoring system.
Dairy Farm is a leading pan-Asian retailer. By the end of 2014, the group operated 5,800 outlets, including supermarkets, hypermarkets, convenience stores, health and beauty stores, home furnishings stores and restaurants. It had about 100,000 employees and total annual sales exceeding USD12 billion in 2013.