Yoshinoya, Dairy Queen operator Hop Hing Group to go private
The company operated 390 Yoshinoya and 189 Dairy Queen restaurants in China as of the end of 2020.
Hop Hing Group, the operator of Yoshinoya and Dairy Queen in China, is planning to go private through a buyout, which will likely result in its delisting from the Hong Kong stock exchange.
Under a proposal announced Monday by Hop Hing Group Holdings, the founding Hung family would pay 0.08 Hong Kong dollar (1 cent) per share for stock they do not own. The full offer is valued at HK$229 million (US$29.4 million).
“The successful implementation of the Proposal will provide more flexibilities to the Group as a privately-operated business in formulating and implementing its long-term business strategies, or to pursue other business opportunities that it may not be practicable to pursue as a public company,” the announcement said.
Going private, it added, “will substantially reduce the administrative costs and management resources required for maintaining the Company’s listing status.”
CEO Marvin Hung and other members of the Hung family control more than 70% of shares in the company.
As of 2020, Hop Hing operated 390 Yoshinoya and 189 Dairy Queen restaurants, located mostly in Beijing, Tianjin and other cities in northern China. The group posted net loss in 2020, citing the impact of the coronavirus pandemic.