Bailian seeks restructuring
8/4/2004 17:47
The Shanghai No.1 Department Store Co Ltd will acquire Shanghai Hualian Co
Ltd as part of a significant restructuring move by Shanghai Bailian (Group) Co
Ltd, the parent company of the two listed firms. The move will integrate and
optimize assets, the Shanghai Morning Post reported today.
The two listed
firms suspended trading yesterday, with the suspension expected to last for an
extended period of time, said an industry analyst.
Investors holding stocks
of Hualian can either receive cash or transfer the stocks to Shanghai No.1
Department Store Co Ltd, the analyst pointed out.
The Shanghai Bailian
(Group) Co Ltd has seven listed firms under its banner, with the other five
being Hualian Supermarket Co Ltd, Lianhua Supermarket Co Ltd, Shanghai
Friendship Group Co Ltd, Shanghai No.1 Food Store Co Ltd and Shanghai Materials
Trading Center (Holdings) Ltd.
Although with advantages in capital strength,
sales channel and business models, Bailian, China's largest retail group,
recognized that integrating assets can make even better use of their existing
resources to possibly go public as a whole, said an industry analyst with
Bailian.
Whether the acquisition can be considered the first step for Bailian
to seek a listing depends on the success of the restructuring, said Xie Zuping,
an industry researcher.
Wendy Zhang/ Shanghai Daily news
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