(Yicai Global) Oct. 25 -- Chinese supermarket chain Yonghui Superstores has agreed to form a joint venture with units of Hong Kong's ParknShop and tech giant Tencent Holdings that combines Yonghui and ParknShop's businesses in China's southeastern Guangdong province.

The partners, which include Tencent Mobility, have set up ParknShop Yonghui to improve operations and assets, Fuzhou-based Yonghui said in a Shanghai stock exchange filing yesterday.

Yonghui will inject the equity of several units worth CNY622 million (USD90 million) into the new company, while ParknShop China Investments will contribute the stock of affiliated companies andCNY502 million in cash. Tencent brings CNY125 million in cash to the arrangement.

Shares of Yonghui Superstores [SHA:601933] rose 0.8 percent today to close at CNY7.79 (USD1.12). The wider Shanghai benchmark was unchanged.

Since Tencent Mobility and Yonghui are affiliated -- Linzhi Tencent Technology took a 5 percent stake in Yonghui last December -- the move does not constitute a major asset restructuring by a public firm under government regulations.

The joint venture's board will have six members, with chosen by Yonghui, two by ParknShop and one by Tencent. Its chairman will be a Yonghui director, the statement said.

Editor: Ben Armour