GERMAN food wholesaler Metro AG’s Chinese business has attracted potential bidders including Internet giant Tencent Holdings Ltd. and domestic buyout firm Citic Private Equity (Citic PE), people with knowledge of the matter said. Metro kicked off its sale of a controlling stake in the Chinese unit this month and first-round offers are expected to be submitted in April, according to the people. The business, which could fetch at least US$1.5 billion, has also drawn interest from local supermarket operator Yonghui Superstores Co., the people said. The German retailer is willing to sell as much as 80 percent of the Chinese business while retaining a significant minority if an attractive offer is made, Bloomberg News reported last month. Deliberations about a potential deal are at an early stage, and there’s no certainty the potential bidders will proceed to submit offers, the people said. Metro’s Cash & Carry business in China spans 95 stores and reported revenue of 2.7 billion euros (US$3.1 billion) in the 2017-2018 financial year, according to its website. Metro is in talks to potential partners about opportunities for the future of its China business and is exchanging information with them, the company said in a statement Wednesday. The company said it won’t comment on the status of the process. (SD-Agencies) |