Jiajiayue Group Co., Ltd. agreed to acquire 70% stake in Inner Mongolia Weilehui Supermarket Co., Ltd. from Inner Mongolia Victory Industrial Co., Ltd. for approximately CNY 380 million.
November 25, 2020
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Jiajiayue Group Co., Ltd. (SHSE:603708) agreed to acquire 70% stake in Inner Mongolia Weilehui Supermarket Co., Ltd. from Inner Mongolia Victory Industrial Co., Ltd. for approximately CNY 380 million on November 24, 2020. The consideration shall be paid in cash. Jiajiayue Group Co., Ltd. will finance the acquisition by its own fund. Post completion, Jiajiayue Group Co., Ltd. will hold 70% stake and Inner Mongolia Victory Industrial Co., Ltd. will hold 30% stake in Inner Mongolia Weilehui Supermarket Co., Ltd. As of September 30, 2020, the total assets is approximately CNY 388 million and the net liabilities is approximately CNY 6.1 million. In 2019, the revenue was approximately CNY 575 million and the net loss was approximately CNY 11 million. The transaction was reviewed and passed at the twenty-fifth meeting of the third directorate of Jiajiayue Group Co., Ltd. on November 24, 2020. The transaction does not need to be submitted to the shareholders meeting for deliberation. The transaction still needs to pass the anti-monopoly review of the concentration of undertakings by the State Administration for Market Regulation. As on December 31, 2020, Anti-Monopoly Law of the People’s Republic of China, after preliminary review, it is now decided that no further review will be implemented on Jiajiayue Group Co., Ltd.’s acquisition and approved the transaction.
JIAJIAYUE GROUP CO., LTD. is a China-based company principally engaged in the operation of chain supermarkets. The Company mainly operates general supermarkets and hypermarkets. Its main products include cosmetics, maternal and infant supplies, food and beverage, grain and oil, fresh food, daily necessities, home cleaning products, as well as local specialty products. The Company mainly operates its business in Weihai, Yantai, Qingdao, Laiwu, Jinan, linyi and Zibo, Shandong Province.
Jiajiayue Group Co., Ltd. agreed to acquire 70% stake in Inner Mongolia Weilehui Supermarket Co., Ltd. from Inner Mongolia Victory Industrial Co., Ltd. for approximately CNY 380 million.