Global law firm Norton Rose Fulbright has advised China Dili Group, formerly known as Renhe Commercial Holdings Company Limited, on the US$133m (RMB950m) acquisition of the wholesaling and retailing businesses of local brand Dili Fresh, which operates more than 250 retail stores and eight franchise stories across China.
In particular, the acquisition comprises Dili Fresh’s supermarket chain, fresh food chain, supply chain and logistics management department. The acquisition will significantly extend China Dili’s agriculture wholesale business into the retail segment of the agricultural sector.
As part of the deal, China Dili has agreed to advance a revolving loan facility for a principal amount of US$280m (RMB2bn) with security. The transaction also includes the purchase of a minority stake in Dili Fresh, with options for China Dili to acquire the remaining majority stake when the prescribed financial performance benchmarks of the target are met.
Norton Rose Fulbright’s Hong Kong-based transaction team was led by corporate partner and head of office Psyche Tai. She was assisted by banking and finance partner Peter Haslam, of counsels Rachel Chan and Vivian Lui, and associates Jane Yau and Alisha Hung.