China Resources JV to acquire stake in high-end Hong Kong supermarket chain

A group led by China Resources Capital Management has plans to buy a majority stake in City Super Group, valuing the high-end Hong Kong supermarket chain at almost $300 million, reported Bloomberg, citing people with knowledge of the matter said.

CR Capital, the alternative investments arm of state-owned conglomerate China Resources Holdings Co., and its co-investors plan to acquire 65 percent of City Super Group from owners led by The Fenix Group. Hong Kong billionaire and former Wheelock & Co. chairman Peter Woo, who owns about 39 percent of the grocery chain, intends to sell down part of his stake.

CR Capital plans to take a 45 percent stake, while Asia Food Brands Private Equity, jointly set up by Investcorp SA, China Resources and Fung Investments, will pick up 20 percent. Fung Investments is a private investment vehicle of Hong Kong billionaire brothers Victor and William Fung.

City Super Group, founded in 1996, has 20 stores in Hong Kong, seven in Sha