CANADIAN FIRM BUYS HK CONVENIENCE STORE CHAIN FOR $360M

Canadian convenience store operator Alimentation Couche-Tard Inc. has entered the Asian market through a deal to buy Convenience Retail Asia Ltd.'s Hong Kong unit for HK$2.79 billion ($359.80 million), the companies said. 

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.