Investcorp, a Bahrain-based company and China’s CR Capital Management has entered into partnership to acquire a majority stake in Hong Kong-based supermarket chain City Super Group, media reports said.
The transaction of the deal is expected to be completed in the fourth quarter of this year.
Hazem Ben-Gacem, Co-CEO of Investcorp, told the media, “As one of the most preeminent food retail and lifestyle brands in Asia, we believe that City Super Group is well-positioned for growth. We have a long history of investing in food brands and supermarket chains globally at Investcorp, and we look forward to working with our world-class partners to support City Super Group’s continued expansion.”
It is reported that the new partnership will pave the way for the Bahrain-based company to ramp up its expansion across China and capitalise on the consumption growth in Asia and other markets. Both the companies will work together with City Super Group’s management team and its staff to execute City Super’s plans.
CR Capital Management is a subsidiary of China Resources Holdings. Investcorp and CR Capital also launched a joint venture worth $275 million for its Asia Food Brands in April.
It is reported that CR Capital Management and its co-investors plan to acquire 65 percent of City Super Group from owners led by The Fenix Group.
Investcorp recorded a contraction of $ 288 million for FY2020 in its profit due to Covid-19 outbreak, compared to $376 million last year.