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Sheng Siong gets nod to operate supermarkets in China
SINGAPORE supermarket chain operator Sheng Siong Group said on Thursday it has received all the necessary approvals from the relevant Chinese authorities on its proposed joint venture (JV) to operate supermarkets in China with Kunming LuChen Group.
The JV company - Sheng Siong (China) Supermarket Co, Ltd - will have a registered capital of US$10 million.
Sheng Siong will inject US$6 million in cash for a 60 per cent stake in the venture, while LuChen Group will provide US$3 million in cash for a 30 per cent interest. Tan Ling San, who is an executive director of Sheng Siong, will inject US$1 million for the remaining 10 per cent stake.
Sheng Siong said the joint venture is "a promising avenue" for it to diversify into China's large market.