New World Department Store China’s parent company plans to take it private for HK$934.5 million (US$120 million), reflecting a restructure of the sector pushed by reduced foot traffic, a consumer shift to online shopping and the growth of large-format malls.
New World Development, which owns 72.29 per cent of New World Department Store, is offering HK$2 apiece for all the shares it does not already own. That represents a 50.4 per cent premium, the company says.
Founded in 1993, New World Department Store runs 40 department stores and two shopping malls in China. New World Development, founded in 1970, is owned by Chow Tai Fook Enterprises.
In other similar deals, Alibaba Group Holding has led a US$2.6 billion offer to take department store company Intime Retail Group private, and a private equity-led consortium has offered to buy Belle International Holdings in a deal valuing the shoe retailer at $6.8 billion.