Billionaire Li Ka-shing’s Hutchison Whampoa Ltd. is asking potential buyers to submit bids for its ParknShop supermarket chain by mid-August, said three people with knowledge of the matter.
Hutchison has sent financial information about ParknShop to prospective buyers in Asia and Europe and asked for indicative offers by Aug. 16, said two of the people, who asked not to be identified because the process is private.
ParknShop, one of Hong Kong’s two main supermarket chains, could fetch $3 billion to $4 billion, a person with knowledge of the matter said earlier this week. Hutchison is considering a sale because of the unit’s slow growth, and as the conglomerate seeks to raise cash after recent acquisitions, the person said. Hutchison has announced $4.7 billion of takeovers in the past two years, data compiled by Bloomberg show.
Goldman Sachs Group Inc. and Bank of America Corp. are advising Hutchison on the proposed sale, the people said. Jeremy Lau, a spokesman for Hutchison, declined to comment on the sale, as did spokesmen for Goldman Sachs and Bank of America.
The Hong Kong-based company said last week that it’s conducting a strategic review of ParknShop, which had sales of HK$21.7 billion ($2.8 billion) in 2012.
Exiting ParknShop would help Hutchison free up resources for investing in faster-growing businesses. The company last month agreed to acquire Telefonica SA’s Irish unit for as much as 850 million euros ($1.1 billion).