Dubai: Bahrain's asset management company Investcorp has picked up its second Chinese exposure in as many days. It has now entered a deal with China Resources Capital Management to acquire majority ownership in City Super, a premium food retail chain.
The existing shareholders, including Fenix Group and the Lane Crawford Joyce Group, will continue to hold a 35 per cent stake in City Super Group. The transaction is subject to regulatory approval in China and is expected to close in the fourth quarter of 2020.
On Monday, Investcorp confirmed a stake in a Chinese AI solutions company, Terminus Technologies.
City Super Group is one of the "most recognizable" food retail chains in Hong Kong and Shanghai. It also operates the LOG-ON stores, which offer lifestyle products. “We believe the Asia food sector continues to offer attractive growth opportunities, especially for leading brands like City Super Group, which has cultivated a strong, loyal customer base," said Hazem Ben-Gacem, Co-CEO of Investcorp.
"We have a long history of investing in food brands and supermarket chains globally at Investcorp.”
After the closing of the transaction, City Super Group’s current management team will continue to operate independently under the city’super and LOG-ON brands. Investcorp Group has a joint venture with CR Capital, the private investment arm of China Resources Group, and Fung Strategic Holdings.
Some of Investcorp’s recent investments in the food sector include Bindawood Holding, one of Saudi Arabia’s leading supermarket groups and Fortune Fish & Gourmet, a US specialty distributor of seafood and gourmet food products.