JD.com spent HK$4 billion (US$509 million) to acquire 70 per cent of Kai Bo Food Supermarket, with the deal involving the grocer’s retail network and property assets, Hong Kong media outlet HK01 reported on Monday, citing anonymous sources.
The deal, which was agreed upon four months ago, included a “transition period” clause saying Kai Bo founder Lam Hiu-ngai and the firm’s current management would retain the operational reins for the next three years, the report said. During that time, JD.com would not seek full operational control to ensure a smooth transition.
Founded in 1991, Kai Bo had around 90 outlets across Hong Kong and employed more than 1,000 people, according to its website. Analysts said Beijing-based JD.com’s move was significant as it accelerates its push to go global.
“Hong Kong is usually the first destination for Chinese firms to globalise their businesses,” said Li Chengdong, founder and chief analyst at Beijing-based e-commerce consultancy Dolphin.
