Suning Acquires Hong Kong Retail Chain Citicall

Sina Tech, 12/31/09

Appliance and electronics retailer Suning (002024.SZ) has officially announced its purchase of top-3 Hong Kong appliance retailer Citicall Retail Management's operations and assets for a total of under HKD 215 mln.

According to the purchase agreement, Suning will purchase Citicall's brand, operations, and network for HKD 35 mln, while also purchasing the company's inventory and other assets at a mutually agreed upon price. The transaction will be completed by the end of Q3 2010 at latest, at which point Suning will officially enter the Hong Kong market.

In addition to Citicall's 22 locations, Suning will choose suitable locations in Hong Kong's commercial district to build 4-5 ~2000 sqm flagship stores. Suning plans to open 20 stores in Hong Kong over the next three years to reach a total of 50 locations, and take 25% or more of Hong Kong's appliance retail market.

Keywords: Citicall overseas M&A hardware retail Suning 002024.SZ consumer electronics home appliances

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