Wharf sells City Super stake
Wharf (Holdings) chairman Peter Woo Kwong-ching will pay $15.2 million to his company in exchange for a 39 per cent stake in City Super.
The deal values the popular lifestyle supermarket and its related stores at $38.9 million, or about 8.6 per cent over its net asset value of $35.8 million.
City Super, which operates three supermarkets and two Log On stores, made $1.3 million net profit for the 10 months to February 29. The consideration was about 24.6 times what it made last year on an annualised basis.
The company has lost about $11.8 million since being established in 1996. Wharf will book a gain of $2.2 million on the disposal of City Super, which it bought 14 months ago.
Wharf paid $10.8 million for City Super in February last year, when parent company Wheelock sold its retail portfolio.