Hop Hing Group, the parent company of multiple Yoshinoya and Dairy Queen ice cream restaurants in Mainland China, is to be privatised through a buyout by the founding family, according to Nikkei Asia.
The group said the privatisation will help it to reduce the administrative cost and management resources required to maintaining the company’s listed status.
According to a group statement issued earlier this week, the Hung family, which owns more than 70 per cent of the shares in Hop Hing Group, will pay HK$0.08 in cash (US$0.01) for each scheme share cancelled. The deal is valued at US$29.4 million. After the announcement, the group’s shares on Tuesday surged about 65 per cent, ending with a 63-per-cent gain.
As of the end of last year, the group operated 390 Yoshinoya restaurants and 189 Dairy Queen shops, mainly in Beijing and Tianjin.