Hong Kong investment holding company Hutchison Whampoa is intending to sell its leading supermarket chain ParknShop.
Under the control of chairman Li Ka-shing, Hutchison Whampoa has reportedly hired representatives from Goldman Sachs Group and Bank of America Merill Lynch to oversee the sale of its supermarket chain.
The transaction is expected to generate as much as US$2bn.
Hutchison Whampoa’s decision to sell its supermarket chain is reportedly part of a broader strategy to downsize its assets in order to grow profits in challenging times.
This approach has proved effective before, when the company sold its Singapore-based port assets in 2011 to reap gains of US$5.7bn.
Another driving factor is Hutchison Whampoa’s intention to exit the grocery market, which it has described as “mature and growing slowly”.
In 2012, ParknShop had a market share of 33.1 per cent. The chain competes fiercely with leading pan-Asian retailer Dairy Farm International Holdings’ supermarket chain, Wellcome, which leads the Hong Kong retail market with a 39.8 per cent market share.
A spokesperson for Hutchison Whampoa has announced that it 'hasn't yet set a definite timetable for completion of its review and there be no assurances that the process will result in any transaction being announced or completed'.
There are currently 345 ParknShop stores across Hong Kong, Macau and China.
No comments yet