Canada's Couche-Tard enters Asia with near $360 mln HK acquisition (updated)

Convenience Retail Asia

05/11/2020 01:29

(Adds details from Couche-Tard statement, recasts lead to add
its Asian expansion)
    HONG KONG, Nov 5 (Reuters) - Canadian convenience store
operator Alimentation Couche-Tard Inc  ATDb.TO  has entered the
Asian market through a deal to buy Convenience Retail Asia Ltd's
 0831.HK  Hong Kong unit for HK$2.79 billion ($359.80 million),
the companies said on Thursday.
    The Circle K convenience stores and Saint Honore bakery
chain operator plans to declare a special dividend of HK$3.85
per share to its shareholders, with the dividend to be paid
before the end of 2020, Convenience Retail Asia said in a filing
to the Hong Kong bourse.
    The convenience store business, with net asset value of
HK$622 million as of end-June 2020, comprises 340 Circle K
stores in Hong Kong, and the net proceeds will be used to pay
the special dividend, the Hong Kong-listed firm added.
    The unit, which holds the second largest market share in
Hong Kong, will be acquired by Couche-Tard on a cash-free and
debt-free basis, the Canadian company said in a separate
statement.
    The deal will be financed through available cash on hand and
is expected to close by Dec. 31. 
    In September, Couche-Tard reported its quarterly results in
which a coronavirus-led slump in fuel demand brought its total
revenue down 31.4% to $9.71 billion. Net income attributable to
the company rose 44.2% to $777.1 million in the same period.
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($1 = 7.7545 Hong Kong dollars)

 (Reporting by Donny Kwok in Hong Kong and Kanishka Singh in
Bengaluru; Editing by Kim Coghill)
 ((donny.kwok@thomsonreuters.com; +852 2843 6470; Reuters
Messaging: donny.kwok.reuters.com@reuters.net))