(Yicai Global) Feb. 13 -- Shanghai Yuyuan Tourist Mart Group, a Chinese retail conglomerate, plans to expand its presence in the Japanese ski market by investing CNY828 million (USD121 million) in the Kiroro ski resort project in Hokkaido prefecture, Japan.
Yuyuan Tourist will buy Napier Tokutei Mokuteki Kaisha and Godo Kaisha Kiroro Management, the two Japanese firms that own the Kiroro project, for JPY11 billion (USD83 billion) and JPY460 million (USD3.5 million), respectively, the Shanghai-based company said on Feb. 10.
After the transaction, Yuyuan Tourist will raise the capital of Napier TMK by JPY4.6 billion (USD34.5 million), which will be used mainly to renovate and upgrade the Kiroro ski area and resort-related facilities.
Yuyuan Tourist already owns the Tomamu ski resort on Hokkaido island, Japan’s largest and northernmost prefecture. With the latest acquisition, the company will own half of the internationally renowned ski resorts in the Japanese city, Yuyuan Tourist noted.
Chinese conglomerate Fosun International is the controlling shareholder of Napier TMK, and Yuyuan Tourist's controlling shareholder is Fosun unit Shanghai Fosun High Technology, making the deal a connected transaction.
Napier TMK's main assets are the Kiroro ski resort project and all the related plots in Hokkaido. The resort has two hotels with a total of 392 rooms, a ski area with 23 trails, a hot spring, and a golf course. The hotel and related facilities have a floor area of approximately 100,000 square meters. GKKM is mainly responsible for running the resort.
Founded in 1987, Yuyuan Tourist has created many industry clusters, including for jewelry and fashion, culture and food, as well as cosmetics and apparel. It owns stakes in 18 long-established Chinese brands and several internationally renowned brands.
Yuyuan Tourist also announced on Feb. 10 that it intends to issue bonds worth up to CNY6 billion (USD880 million) to adjust its debt structure, repay debts, and replenish working capital.
Shares of Yuyuan Tourist [SHA: 600655] rose 1.4 percent to close at CNY7.95 (USD1.17) today.
Editor: Futura Costaglione