Tencent Holdings Co. (0700.HK) plans to buy a stake in supermarket operator Yonghui Superstores Co. (601933.SH), as the Chinese tech and social-media giant pushes into the offline retail market.
Yonghui Superstores said in a filing on the Shanghai stock exchange late Monday that a unit of Tencent is in talks to buy a 5% stake in the operator of hypermarkets and supermarkets. The internet giant also plans to buy a 15% stake in the supply chain and logistics unit of Yonghui Superstore via a capital injection, it said, adding that details of Tencent's potential investments remain under discussion.
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Tencent's move into offline retail market comes after major rival Alibaba Group Holding Ltd. in November announced a plan to pay HK$22.4 billion ($2.87 billion) for a major stake in China's top hypermart operator Sun Art Retail Group Ltd. (6808.HK)
Yonghui Superstores's shares remain suspended from trading after a halt on December 8 as the stock jumped its daily limit of 10% on speculations of Tencent's possible investment. Tencent couldn't be immediately reached for comments.
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(END) Dow Jones Newswires
December 11, 2017 19:30 ET (00:30 GMT)