Wumart raising cash for stores

Wumart Stores Inc, Beijing's largest supermarket chain, yesterday announced that it would cumulatively raise about HK$1.65 billion (or around $200 million) from strategic investors, including a TPG-managed fund, and use the money to open new stores and make acquisitions.

According to the company's stock exchange filing yesterday, TPG Asia V LP will buy HK$930 million of Wumart's Hong Kong-listed stock and a unit of Chinese private equity firm Hony Capital LP will buy HK$170 million of shares. These strategic investors' shares would account for 10.9 percent of the company's total shareholding equity.

Hony is part of Legend Holdings Ltd, parent of PC maker Lenovo Group Ltd. TPG Asia V LP had invested in Legend Holdings Ltd in 2005.