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China's Tencent plans to buy 5% stake in Yonghui Superstores
[HONG KONG] Chinese tech giant Tencent Holding Ltd plans to buy a 5 per cent stake in Yonghui Superstores, the department store operator said on Monday.
The investment will be made through an affiliate of Tencent, which also aims to take a 15 per cent stake in Yonghui Superstore Co Ltd's supply chain and logistics subsidiary via a capital increase, the retailer said in a filing to the Shanghai stock exchange.
Details of the investments, including the transaction prices and stake sellers, remain under discussion, it added in the filing.
Tencent was not immediately available for comment outside of normal business hours.
Trade in Yonghui Superstores remains suspended after it was halted on December 8. Before the suspension, it jumped its daily limit of 10 per cent following local reports of Tencent's investment.
China's e-commerce giants have pushed into traditional retail. In November, Alibaba Group Holding Ltd said it would invest $2.9 billion in China's top hypermart operator Sun Art Retail Group Ltd for a major stake.