Warburg buys $300 mln stake in China's Wangfujing group-paper http://today.reuters.com/news/articleinvesting.aspx?view=CN&storyID=2006-09-29T024625Z_01_HKG49928_RTRIDST_0_MARKETS-CHINA-RETAIL.XML&rpc=66&type=qcna Thu Sep 28, 2006
HONG KONG, Sept 29 (Reuters) - US-based private equity firm Warburg Pincus [WP.UL] will pay about $300 million for up to a 49 percent stake in prominent Chinese retailer Wangfujing Department Store (Group) Co. Ltd. (600859.SS: Quote, Profile, Research) after rival bidders withdrew, a newspaper reported on Friday.
Shanghai-listed Wangfujing, one of China's oldest retailers that operates the venerable Wangfujing Department Store in Beijing, saw its shares rise 3.75 percent to 16.05 yuan in early Friday trade.
Two rival bidders, U.S. buyout firm Carlyle Group [CYL.UL] and Legend Capital, an investment arm Legend Holding, dropped out of the bidding for a non-controlling stake in the retailer, the South China Morning Post quoted anonymous sources as saying.
Legend Holding is the parent of the Lenovo Group (0992.HK: Quote, Profile, Research).
Warburg Pincus will buy the stake from the Beijing municipal government and the deal will require government approval, the paper said.
Founded in 1955 as Beijing's main department store, Wangfujing has recently felt pressure from international retail chains such as Wal-Mart Stores (WMT.N: Quote, Profile, Research) and Carrefour S.A. (CARR.PA: Quote, Profile, Research), and needs capital for expansion, it added.
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