A planned privatisation of New World Department Store China has failed.

An insufficient number of independent shareholders lodged acceptances for the HK$934.5 million (US$120 million) takeover plan by Monday’s deadline and the company advised the Hong Kong stock exchange the plan has lapsed.

For the buyout to proceed, acceptances were required from shareholders accounting for 90 per cent of the company’s shares. By Monday afternoon, just 83.9 per cent was received.

New World Development, which owns 72.29 per cent of New World Department Store, had offered HK$2 apiece for all the shares it does not already own. That represents a 50.4 per cent premium, the company said at the time.

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.