Wumart Stores Inc. (01025.HK) and C.P. Lotus Corp. (00121.HK) are in talks over a possible acquisition, Tencent’s qq.com reported Tuesday, citing sources from Wumart. Shares of both companies were suspended from trading on Tuesday, pending an announcement. As of end-June, Wumart had 541 shops, mainly in Beijing, Tianjin, Hebei and Zhejiang. It had cash and bank deposits of about 800 million yuan (US$131 million). C.P. Lotus, which entered the China market in 1997, had 56 retail stores in the mainland during the period. C.P. Lotus booked a net loss of 46.7 million yuan during the first six months on revenue of 5.4 billion yuan, up 1.2 percent year on year. It recorded a net loss of nearly 400 million yuan in 2012.
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