Wang On Group, which specialises in the management and sub-licensing of wet markets and shopping centres, told the Hong Kong Stock Exchange that it has entered into a letter of intent with Shenzhen Agricultural Products Co to acquire a 50% stake in Shenzhen Jimao Market Co. The transaction has been valued at a maximum of HK$63.8m (US$8.21m).

Shenzhen Jimao Market is principally engaged in the operation and management of 20 traditional wet markets.

Wang On intends to seek banking facilities to fund HK$30m, with the remainder being funded through international resources, the company said.

The acquisition would allow Wang On to extend its wet market activities into the Chinese mainland, the group added.