TPG and Legend Holdings buy stake in Chinese retailer Wumart

Private equity firm Texas Pacific Group and China's Legend Holdings will invest $213 million for an 11% stake in Hong Kong-listed Chinese retail chain Wumart Stores.

Both investors are buying a combination of H-shares and domestic shares. TPG will route the investment through TPG Asia. Legend Holdings is a Chinese investment company which owns a controlling interest in Chinese computer firm Lenovo. Legend is routing its investment through investment companies Hony Capital and Fit Sports.

Wumart is raising HK$1.1 billion $141.9 million through the issue of H-shares. TPG is buying 84.5 million worth of H-shares for HK$930 million. TPG will own a 6.17% stake in the fully enlarged capital of Wumart, post both...