Fosun pullout leaves 2 bidding for Jahwa
By Lu Nengneng |
October 22, 2011, Saturday
|
Print Edition
Print Edition
SHANGHAI Fosun Industrial Investment has withdrawn its proposal to acquire state-owned cosmetics maker Shanghai Jahwa, while another two bidders, Hainan Airlines and Shanghai Pingpu Investment, are sticking to their takeover plans.
The Shanghai subsidiary of Hong Kong-listed Fosun International failed to put down a deposit to further its participation in the acquisition, Jahwa said yesterday.
The other two bidders have each paid 500 million yuan (US$78 million) to qualify to bid for the full stake in Jahwa, which was valued at 5 billion yuan by the government last month.
Trading in Jahwa has been suspended on the Shanghai Stock Exchange since December because of the company's restructuring, which is considered a signal the government plans to exit.
Jahwa has said a buyer must have the resources to help it extend its presence in the fashion industry without involvement in a competitor.
Hainan Airlines has established its retail operation through aggressive takeovers over several years. It now owns more than 200 supermarkets and eight department stores in China.
But analysts said the scale of its retail business fails to give it an edge in marketing Jahwa's products.
However, Pingpu Investment, a subsidiary of Ping An Insurance, is favored, as its investment capability, coupled with its international background, can speed Jahwa's expansion both at home and abroad.
The Shanghai subsidiary of Hong Kong-listed Fosun International failed to put down a deposit to further its participation in the acquisition, Jahwa said yesterday.
The other two bidders have each paid 500 million yuan (US$78 million) to qualify to bid for the full stake in Jahwa, which was valued at 5 billion yuan by the government last month.
Trading in Jahwa has been suspended on the Shanghai Stock Exchange since December because of the company's restructuring, which is considered a signal the government plans to exit.
Jahwa has said a buyer must have the resources to help it extend its presence in the fashion industry without involvement in a competitor.
Hainan Airlines has established its retail operation through aggressive takeovers over several years. It now owns more than 200 supermarkets and eight department stores in China.
But analysts said the scale of its retail business fails to give it an edge in marketing Jahwa's products.
However, Pingpu Investment, a subsidiary of Ping An Insurance, is favored, as its investment capability, coupled with its international background, can speed Jahwa's expansion both at home and abroad.
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