Hong Kong supermarket chain Kai Bo Food Supermarket has reportedly been acquired by JD.com (9618) for around HK$4 billion, according to a local media report.
The two parties are said to have signed the agreement around four months ago, covering Kai Bo’s retail network and property assets, with the transaction to be completed in phases, the report said, adding that the transaction involves around 70 percent of the stake in the supermarket chain.
Following the acquisition, a new company is expected to be established on August 1 to manage daily operations under the joint direction of JD.com and the supermarket firm.
The report also revealed that the agreement includes a “transition period” clause, during which JD.com will not immediately take over full management. Instead, Kai Bo founder Lam Hiu-ngai and his team will continue to oversee operations for three years, after which JD will determine its next steps.
Founded in 1991, Kai Bo currently operates around 90 outlets across Hong Kong with over 1,000 staff, according to its website.
Staff reporter
