Make me your Homepage
left corner left corner
China Daily Website

CRE delays Tesco JV report

Updated: 2013-12-25 17:32
Hong Kong-listed China Resources Enterprise Ltd, which operates the Vanguard stores, has said the publication of a circular, that provides more details on its joint venture with Tesco, the UK supermarket group, has been delayed till February.

Li Ruxiong, executive director and chief financial officer of the State-backed firm, said in a statement on Tuesday that CRE needs more time to implement and download the accountants' report and prepare the required financial statements, a move he said would not affect the proposed joint venture.

According to the agreement signed with Tesco in October, CRE was expected to send a circular containing the relevant details and the accountants' report to shareholders before the end of the year. The circular is now likely to be published by Feb 25, CRE said.

Earlier reports said the venture with Tesco would create a new business with sales of more than 10 billion pounds ($16.2 billion). CRE would have an 80 percent stake in the venture, while the British retailer would hold the remaining 20 percent.

The joint venture, had set sights on becoming the leading retailer in seven of the eight most populous and economically advanced provinces in China, and also envisages combination of Tesco's 134 stores as well as its shopping mall businesses with CRE's 2,986 stores.