(Yicai Global) Jan. 3 -- The actual controllers of convenience store brand Chengdu Hongqi Chain Co. will sell a 9-percent stake in the firm to Yonghui Superstores Co.
The deal with Cai Shiru and Cao Zengjun will see Fujian-based Yonghui become Hongqi's second-largest shareholder with a total 21-percent stake, the supermarket operator said yesterday. Yonghui purchased a 12-percent holding from the controllers for CNY947 million (USD146 million) in December.
The two companies and China Minsheng Futurelife Holding Group Co., which has an 8-percent stake in Hongqi via China Minsheng Caizhi Co., also penned a strategic agreement to explore New Retail.
New Retail has become a key term in China's progressing consumer economy as of late. Alibaba Group Holding Ltd.'s Chairman Jack Ma coined the term in 2016, and describes it as "the integration of online, offline, logistics and data across a single value chain."
Under the deal, CMIG Futurelife will use its property management experience to create unmanned convenience stores in local communities with its new partners. In return, Yonghui and Hongqi will provide staff support CMIG Futurelife's care services for the aged.
Hongqi has more than 2,700 convenience superstores in Sichuan province, while Yonghui Superstores ranks fifth among retailers nationwide with a 3.2-percent market share. It secured CNY4.2 billion in investment from internet behemoth Tencent Holdings Ltd. at the end of last year. CMIG Futurelife offers community services to 18 million residents across 126 cities.