It is reported that JD.com is acquiring JiaBao, involving approximately 4 billion yuan, including its retail network and properties

Local media "Hong Kong 01" reported that the local "Jia Bao Food Supermarket" has been sold to JD-SW (09618.HK). The two parties signed the agreement about four months ago, with the transaction valued at approximately HKD 4 billion, including the acquisition of Jia Bao's retail network and properties, with the payment to be made in installments.

The report cites sources indicating that the acquisition agreement includes a "transition period" clause, meaning that Jia Bao's founder Lin Xiaoyi and others will continue to manage the business for three years, after which the next steps will be discussed.

According to documents circulating online, Jia Bao's parent company "Duo Tai Investment Limited" and "Hai Feng Food Limited" have notified their partner merchants that Jia Bao Food Supermarket/Jia Bao Frozen Meat Supermarket is undergoing a business transfer, with the new investor being JD, aimed at promoting strategic development, which will involve adjustments to cooperation arrangements with merchants.

Additionally, "Ming Pao" reported that the group will undergo a business restructuring, with its supermarket and wholesale operations being transferred to a newly established company in Hong Kong, "Jia Bao Supermarket (Hong Kong) Limited," which will be jointly wholly owned by the transaction parties and Lin Xiaoyi after the restructuring. If the restructuring proceeds smoothly, it will officially transfer to the new business entity starting August 1.

The report further states that "Jia Bao Supermarket (Hong Kong) Limited" was established on May 13 of this year, with Lin Xiaoyi as both the founding member and the first director, and the registered address remains at Jia Bao's headquarters located at "18 Jia Bao Group Center, Kwai Hing Street, Kwai Chung, New Territories, Hong Kong."

Jia Bao Food Supermarket was established in 1991 and currently has about 90 branches across Hong Kong, with a total of over 1,000 employees