Xiao Nan Guo Restaurants Holdings Ltd. (03666.HK) has entered into an agreement to acquire 65 percent stake in Pokka Corp. (HK) Ltd. in a deal worth HK$195 million (US$25.15 million).
The mainland restaurant chain operator sees the acquisition as a strategic move to expand its brand portfolio and penetrate the mass eatery and beverage market, the Hong Kong Economic Journal reported Friday.
Pokka Corp. operates Pokka Cafés and some Japanese dining outlets in Hong Kong and Macau.
Following the deal, Xiao Nan Guo plans to take Pokka Cafés to the mainland. The Chinese firm will have exclusive rights to use the Pokka Café brand in Hong Kong, Macau and the mainland for 25 years, effective 2015.
The remaining 35 percent stake in Pokka (HK) is being purchased by a company controlled by its managing director Pauline Wong Shui-ching.
Xiao Nan Guo aims to open up to five Pokka cafés in Shanghai next year, targeting the youth, chairperson Wang Huimin was quoted as saying.
Chief executive Kang Jie said the group will also introduce Japanese deep-fried pork chop specialist Tonkichi, another brand under Pokka Café, to mainland China, with the first outlet to be opened in Shanghai.
The deal is expected to close in January. Xiao Nan Guo will fund the transaction with bank loans and internal capital.
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