(MENAFN- The Peninsula) Qatar Investment Authority (QIA), sovereign wealth fund of Qatar, yesterday announced the acquisition of nearly 20 percent stake in Lifestyle International Holdings, a Hong Kong-based retail chain, for $616.1m (QR2.24bn).
Under the deal, Real Reward, Lifestyle's controlling shareholder, is selling 324 million shares or a 19.9 percent stake in Lifestyle to QIA at the rate of HK$14.75 (about QR6.92) a share, which is only a 1 percent premium to their last close at HK$14.60 on September 23. Trades in the shares of the company were suspended on September 24.
"The Qatar Investment Authority's investment in Lifestyle International Holdings is a continuation of the Qatar Investment Authority's investment plan to diversify its global portfolio; this time in Asia," said a spokesperson at QIA in a press statement.
"Today's transaction adds to the number of investments made this year, including Qatar Investment Authority's investment in European e-commerce (vente-privee.com); real estate in Spain and France (Colonial-SFL) and global business travel (American Express GBT joint venture)," added the spokesperson.
The latest investment in Lifestyle International by QIA diversifies its retail and consumer portfolio by complementing existing investments in Harrods, Tiffany and Co and others.
Real Reward is owned by two major Hong Kong-based billionaire families, the Cheng grouping helmed by tycoon Cheng Yu-tung, and the Lau family. The Cheng family controls their stake through Chow Tai Fook Enterprises Ltd, while the Lau family, which has real estate holdings in the city, controls their holding on a personal basis.
Thomas Lau, who is also Lifestyle's chief executive, owns part of Real Reward while his brother Joseph Lau, who controls Hong Kong-listed property firm Chinese Estates Holdings Ltd, owns the rest through a trust.
"This strategic partnership with Qatar Holding demonstrates the confidence they have in the company and our business strategy and potential for growth," Thomas Lau was quoted as saying by Wall Street Journal.
"We will work closely together with Qatar to leverage on each other's business strengths and network to further grow our business."
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