Wumart sells stake to TPG, Hony ahead of possible listing

Domestic retailer Wumart is selling a 10.95% stake to private-equity firms TPG Capital and Hony Capital for US$212.9 million, and says it will pursue a domestic listing in the next three years, the Wall Street Journal reported. The retailer agreed to sell H-shares to TPG at HK$11 (US$1.42) each, giving the US private-equity firm a 6.17% stake in the company. Wumart has also agreed to sell H-shares and unlisted domestic shares to Hony Capital, the private-equity arm of Legend Holdings, giving it a 4.16% stake. Legend Holdings will subscribe to unlisted shares for a 0.62% stake. After the sale, Wumart’s parent company, Wumei Holdings, will hold 36.34% of the retailer, a drop from 40.8%.