May 30, 2020
Uncategorized

New World Dept. Store Delisting Won’t Impact Chow Tai Fook

HONG KONG — The delisting of New World Department Store China Ltd. will not significantly impact the business of its sister company, Chow Tai Fook Jewellery, Adrian Cheng, an executive director of both companies, said Thursday.
The proposed privatization was revealed Tuesday and makes it the second major Chinese department store chain, following Intime, to retreat from public trading as retailers struggle to adapt in a challenging retail environment.
New World Department Store China operates 40 department stores and two shopping malls across 22 cities in China, and is listed on the Hong Kong Stock Exchange. Both Chow Tai Fook Jewellery and New World Department Store China are majority-owned by the Cheng family.
“[For Chow Tai Fook], we work with different department stores so we will continue our partnerships [with them],” Cheng said at the annual earnings briefing of Chow Tai Fook Jewellery, declining to comment on the matter further.
The proposal for New World Department Store China offers 2 Hong Kong dollars, or 26 cents, in cash per share, representing a premium of about 73.5 percent over the average closing price in the last 180 trading days. If accepted, the transaction would amount to a value of 934.5 million Hong Kong dollars, or $119.8 million.
RELATED:

Follow WWD on Twitter or become a fan on Facebook.

Read More…