CHINA. In big breaking news, China Duty Free Group’s (CDFG) parent company China International Travel Service today announced that, subject to regulatory approval, CDFG has acquired 51% of Sunrise Duty Free (Shanghai) Co. Ltd from Base Rich Investments Limited and Shanghai Wenyuzhai Books Co. Ltd.
The deal covers all Sunrise Duty Free’s business at Shanghai Pudong Airport (the main location) and Shanghai Hongqiao International Airport.
The transaction was valued at RMB1.505 billion (US$239 million).
Today’s new follows a similar 51% acquisition by CDFG last year of Sunrise’s Beijing Capital International Airport operations.
As revealed by The Moodie Davitt Report, that deal only included the Beijing business, an agreement that ultimately paved the way for CDFG and Sunrise to split the Beijing Capital International Airport duty free business with CDFG being awarded the T2 contract and Sunrise that for T3 [it was incorrectly reported elsewhere that CDFG had last year acquired a 51% holding in the total Sunrise Duty Free business from Boyu Capital].
The announcement consolidates the already formidable relationship between Chinese state-owned giant CDFG and the hitherto privately held Sunrise Duty Free.
We’ll bring you more details soon.
