Chinese retailer Wumart Stores said today (16 December) its plan to buy a batch of outlets in the country from Thai conglomerate Charoen Pokphand Group had fallen through.
In October, Wumart announced a deal to buy 36 C.P. Lotus stores for HK$2.34bn (US$301.8m). In separate transactions, the two companies also planned to buy stakes in each other.
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However, in a statement to the Hong Kong stock exchange today (16 December), Wumart said the two sides had failed to agree on the terms of the deal by the agreed deadline of 14 December, also known as the “long stop date”.
“The company would wish to update shareholders and investors that it has not entered into definitive documentation before the long stop date with CP Lotus and the long stop date has not been extended,” Wumart said. “The company would wish to emphasise that it has taken into account the best interests of its shareholders in connection with the foregoing.”
In October, Wumart had said the C.P. Lotus stores would give it “an immediate entry into important geographic regions such as eastern China”.
Under the terms of the deal, Wumart also planned to buy 9.99% of C.P. Lotus for a further HK$547.9m. C.P. Lotus was set to pay HK$2.89bn for a 13.77% stake in Wumart.
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