Canada based operator of convenience stores Alimentation Couche-Tard Inc. (ATD) simply referred to as Couche- Tard has entered into a deal to purchase the Hong Kong unit of Convenience Retail Asia Ltd (0831 ) for HK$2.79 billion ($359.80 million).
According to a regulatory made by Convenience Retail Asia to the Hong Kong bourse, the company will be declaring a special dividend of HK$3.85 per share to its shareholders. The dividend will be paid before the year wraps up.
Up to end of June 2020 the convenience store business had a net asset value of HK$622 million including 340 Circle K stores in Hong Kong. The company says the net proceeds will be used to pay the special dividend.
In a separate statement, Couche- Tard said the acquisition deal will be a cash-free and debt-free in nature.
Currently Hong Kong unit of Convenience Retail Asia holds the second largest market share in Hong Kong. This deal will be concluded using cash on hand and it’s expected to be closed by December 31.