(Yicai Global) Jan. 30 -- Tencent Holdings Ltd. has received approval from Yonghui Superstores Co., one of China's largest supermarket operators, to proceed with its acquisition of a 15 percent stake in its fresh food chain Super Species as the tech giant moves into the New Retail sector.
Fuzhou-based Yonghui has approved a CNY250 million (USD39.5 million) capital increase in Super Species operator Yonghui Yunchuang Technology Co., with Tencent contributing CNY187.5 million, it said in a press briefing yesterday. Tencent and Yonghui Superstores will hold 15 percent and 46.6 percent of the fresh food chain.
The main aim of the investment is to jointly develop the brand to keep up with similar moves made by rival Alibaba Group Holding Ltd. Alibaba has already established a presence in the field by backing growing supermarket chain Hema Fresh Food. China's tech firms are looking to expand business into brick and mortar stores that combine online and offline shopping experiences, constituting what is termed New Retail.
Tencent first announced its intention to become a shareholder in Yonghui Superstores last December with a focus on Super Species.