PCD Stores Says Wangfujing Parent to Buy 39.5% Stake, Make OfferJoshua Fellman
PCD Stores Ltd., which runs luxury and high-end fashion department stores in China, said the parent of a rival will purchase a 39.5 percent stake in the company and then make a buyout offer.
Beijing Wangfujing International Commercial Development Co. will pay HK$2 billion ($257.5 million) to Bluestone Global Holdings Ltd. and Portico Global Ltd. for 1.66 billion shares, according to a Hong Kong stock exchange filing yesterday. Wangfujing International will then offer HK$1.20 each for the remaining PCD shares outstanding, according to the filing.
PCD fell 3.5 percent to HK$1.09 in Hong Kong on Jan. 24, its last day of trading before a suspension. The stock has declined 44 percent since its listing in December 2009, compared with a 7.4 percent gain in city’s benchmark Hang Seng Index. PCD is scheduled to resume trading today.
Wangfujing International controls Shanghai-listed Beijing Wangfujing Department Store Group Co., according to the joint filing with PCD yesterday. The Wangfujing group is ultimately controlled by the Beijing state-owned assets regulator.