Wharf sells City Super stake

PUBLISHED : Saturday, 17 April, 2004, 12:00am
UPDATED : Saturday, 17 April, 2004, 12:00am


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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.