(Yicai Global) Oct. 31 -- Under the impact of new retail mode of 'Internet + Economy,' the traditional retail sector is gradually becoming "mutton for punishment. The largest community chain company Beijing K.P.I. Hi-24 Convenience Stores Co. (Hi-24) is no exception.
A joint venture China CVS which is founded by Greentown Service Group Co. [HKG:2869], Xianlife Limited and Shanghai YiGuo E-Commerce Co., a subsidiary of Alibaba Group Holding Ltd [NYSE:BABA], will sign an agreement with Morgan Stanley [NYSE:MS], under which, China CVS will buy the full control of Hi-24 for USD84 million, said a statement from Greentown said on Oct. 29.
Once the deal is concluded, Xianlife, Greentown Service and YiGuo will hold 50 percent, 35 percent and 15 percent of the total stake in Hi-24 via China CVS, respectively. Following the acquisition, the existing management will remain unchanged, and it will increase capital with the new shareholders.
Xianlife, the leading company in this round of acquisition, is an internet startup firm which has been founded more than three years ago. Its founder and CEO Xiao Xin once served as senior vice president in investment banking division of JPMorgan Chase & Co. [NYSE:JPM], led and participated in the financing and initial public offerings projects of Chinese e-commerce companies such as Jumei International Holding Ltd.[NYSE:JMEI] and Vipshop Holdings Ltd [NYSE:VIPS].
Hi-24 is a Beijing-based convenience store brand which owns nearly 300 stores. It is a neighborhood chain convenience store, which enjoys the most extensive coverage area and the largest service density in Beijing.