Sheng Siong inks deal to operate supermarkets in China

Sheng Siong Group has signed a conditional agreement to set up a joint venture with Kunming LuChen Group Co to operate supermarkets in China. -- PHOTO: ST FILE
Sheng Siong Group has signed a conditional agreement to set up a joint venture with Kunming LuChen Group Co to operate supermarkets in China. -- PHOTO: ST FILE

SINGAPORE - Sheng Siong Group has signed a conditional agreement to set up a joint venture with Kunming LuChen Group Co to operate supermarkets in China.

Under the deal, the joint venture company will be incorporated in China with a registered capital of US$10 million.

Sheng Siong will inject US$6 million in cash for a 60 per cent stake in the venture, while LuChen Group will provide US$3 million in cash for a 30 per cent interest.

Mr Tan Ling San, who is an executive director of Sheng Siong. will pump in US$1 million for the remaining 10 per cent stake.

The deal is subject to regulatory approvals in China.