Weekly News Wrap: Suning's shareholders to sell 20%-25% stake; Tim Hortons China to add over 200 shops in 2021

And Reliance Retail’s Mukesh Ambani was hailed as the wealthiest man in Asia.

From Reuters:

Suning’s shareholders plan to sell 20% to 25% of the company to unnamed buyers which might lead to a change in control as its parent seeks to raise cash. The company said it was notified of the stake sale by its founder Zhang Jindong and its parent Suning Appliance Group, who respectively hold a 20.96% and 19.88% stake in the firm.

Suning’s other shareholders include e-commerce giant Alibaba Group which bought a 19.99% stake as part of a strategic partnership in 2015.

“The transfer, if completed, will help further improve the company’s shareholding structure and the steady implementation of long-term strategy,” Suning said in a statement to the Shenzhen Stock Exchange on Thursday, without elaborating. Trading of shares in Suning was suspended ahead of the announcement.

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From Reuters:

Coffee chain Tim Hortons China has completed a new fundraising round from Sequoia Capital China, Tencent and Eastern Bell Capital, and plans to add more than 200 shops to its network this year, the coffee chain operator said.

The Toronto-based firm did not disclose how much cash it had raised, but said the funds would be channeled into building more outlets as well as its digital infrastructure and brand. It also plans to enter the coffee retail market this year, which could involve opening a store on Alibaba’s Tmall, the chain said.

Tim Hortons has opened more than 150 shops in 10 cities since it entered China two years ago, calling them “profitable”, but domestic proprietors have complained of tough price competition.

Independent food industry analyst Zhu Danpeng said the expansion plans suggested the chain was doing fine in a crowded market, but it had to improve its brand positioning.

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From Bloomberg:

Mukesh Ambani, the largest shareholder of Reliance Industries which owns Reliance Retail, is back to being the wealthiest person in Asia.

With a net worth of about $80b, Ambani is again richer than Zhong Shanshan, whose bottled-water company tanked a record 20% this week. The Chinese tycoon is worth $76.6b, down more than $22b from a peak just last week, according to the Bloomberg Billionaires Index.

Ambani has focussed on pivoting his empire to tech and e-commerce, moving away from energy. Last year, he sold stakes in Reliance’s digital and retail units worth $27b to investors including Google and Facebook Inc., lifting his fortune by $18b.

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