TPG, Hony, Legend Holdings to Invest in Wumart

By staff reporters Wang Shanshan, Wang Ziwu

(.com.cn) U.S. private equity firm TPG, along with China-based Hony Capital and Legend Holdings, will invest HK$1.65 billion to buy a stake in Wumart Stores Inc. (HKEX: 8277), one of China's leading retail chains, the four firms said in a joint statement on August 12.

Wumart will issue 84.55 million H-shares to TPG Asia, equivalent to a 6.17 percent stake, and 15.45 million H-shares to Fit Sports Ltd., an affiliate of Hony Capital, equal to a 1.13 percent stake, at HK$11 per share, a 7 percent discount to the average closing price for the last five trading days, according to the statement.