Bonjour sells 19 beauty salons

PUBLISHED : Thursday, 21 August, 2014, 11:58am
UPDATED : Thursday, 21 August, 2014, 11:58am

Cosmetic retailer Bonjour has agreed to sell a group of 19 beauty salons to Town Health International Medical for HK$423.78 million in shares.

The deal, announced by Bonjour on Wednesday night, expected to result in an unaudited accounting gain of about HK$420 million for the Hong Kong-listed cosmetic retailer.

Under the agreement, Bonjour will sell its subsidiary Bonjour Beauty International, which holds eight firms operating 19 beauty and health salons under the About Beauty, Dr Protalk and Top Comfort brands in Hong Kong, Macau and on the mainland, to Town Health, a Hong Kong-listed healthcare company.

Town Health will pay in shares, at an issue price of HK$1.16 a share. Upon completion, Bonjour will hold about 7.33 per cent of Town Health’s issued share capital.

The disposal will serve as an opportunity for the group to streamline its business

Bonjour executive director Wilson Ip Chun-heng will be appointed an executive director of Town Health.

“The disposal will serve as an opportunity for the group to streamline its business, thereby enhancing efficiency, the decision-making process and its responsiveness to market changes,” Bonjour said in the announcement.

“It is the group’s intention to consolidate and focus on developing the retail and wholesale brand-name beauty and healthcare products business, which is the core business of the group.”