Chow Tai Fook Enterprises, an investment firm privately held by Cheng Yu-tung, has bailed out troubled luxury watch maker and retailer Peace Mark (Holdings).
The investment company did not disclose the amount for the acquisition, but a source close to the deal said it paid about HK$600 million for Peace Mark's retail network in the Greater China area as well as its watch-manufacturing facilities.
On the completion of the deal, Chow Tai Fook would take over Peace Mark's 120 luxury watch shops and about 1,000 watch selling points on the mainland, Hong Kong and Macau, the company said.
'The acquisition is a rare opportunity,' said Henry Cheng Kar-shun, a son of Mr Cheng and a director of Chow Tai Fook.
'It can expand Chow Tai Fook's jewellery and watch retail network to over 800 selling points on the mainland.'
Chow Tai Fook's jewellery unit is one of the biggest in Hong Kong and is actively expanding on the mainland.
The deal, approved by the High Court on Monday, is the second this year in which the Cheng family has come to the rescue of a company.