(Yicai Global) Nov. 2 -- Gree Real Estate has finally sealed its take-over deal of sister company Zhuhai Duty Free Enterprises Group, first announced in May, in a transaction worth CNY12.2 billion (USD1.8 billion), the property developing arm of the Zhuhai State-Owned Assets Supervision and Administration Commission announced on Oct. 30.

The entry into the lucrative duty-free sector will boost Gree’s prospects and grant it rare resources, the Zhuhai, Guangdong province-based firm said. Gree will pay 6.55 percent in cash and the rest through the issuance of new stocks, it added.

China has been promoting the duty-free sector this year to help boost consumption in the wake of the Covid-19 pandemic. Zhuhai Duty Free, also owned by the Zhuhai SASAC and one of the country’s top five state-owned duty-free retailers, has been in business since the 1980s but recently got a big boost with the opening of the Hong Kong-Zhuhai-Macau Bridge in late 2018.

Zhuhai Duty Free logged CNY690 million (USD103 million) in net profit last year on revenue of CNY2.1 billion (USD314 million). The firm has pledged to rake in net profit of CNY551 million next year, CNY641 million in 2022 and CNY747 million in 2023.

When Gree first announced its intention to acquire Zhuhai Duty Free, its stock price [SHA600185] doubled, but then fell back when the purchase was delayed. Today, Gree’s shares were trading up 0.83 percent at CNY9.80 (USD1.46) as of 1:30 p.m. China time.

Editor: Kim Taylor