Shanghai Bailian Group (600827.SH) announced on September 27th that, in order to promote the sustainable and healthy development in the medium and long term, enhance overall performance, and focus on the core business of shanghai and zhejiang based on factors such as market and competitive environment, network value, and supply chain impact, Lianhua supermarket and its wholly-owned subsidiary, Century Lianhua, plan to enter into an equity transfer agreement with Dongran Industry. They will transfer 100% equity of its subsidiaries Jiangsu Lianhua, Anhui Century Lianhua, and Hongkou Century Lianhua held by Lianhua supermarket and Century Lianhua to Dongran Industry through a non-public agreement, at a transfer price of RMB 145.5234 million.
After the completion of this equity transfer, Dongran Industry plans to sign a management agreement with Lianhua supermarket. Starting from the effective date of the management agreement, Lianhua supermarket will provide operational management services and resource support services to the three aforementioned companies for a period of three years.
The partial subsidiary equity transfer between Lianhua supermarket, Century Lianhua, and Dongran Industry in this transaction will promote the healthy development of Lianhua supermarket in the medium and long term, beneficial for the localized development and focusing on the core business in shanghai and zhejiang. Additionally, the management agreement signed between Lianhua supermarket and Dongran Industry will facilitate a smooth transition for the three companies after the completion of the equity transfer. By leveraging its own brand, commodities, and management advantages, Lianhua supermarket will continue to operate steadily.
