Warburg Pincus in talks to buy stake in China furniture retailer: report
06 Jun 2007
Mumbai: Private equity firm Warburg Pincus is in advanced talks for acquiring a major stake in Chinese retailer Red Star Furniture Group, reports quoting sources close to the deal said.
Warburg Pincus expects to acquire a little less than 50 per cent stake in Red Star even as China''s fast-growing home furnishing market draws increasing foreign interest.
The Shanghai-based Red Star is privately owned and operates 33 outlets, mostly in the affluent east coast. It sells furniture and home furnishings, targeting mostly to homeowners who are spending heavily on decorating newly purchased apartments.
Red Star is eyeing an eventual stock market listing to improve its corporate structure and secure a fund-raising channel, the source said.
Hong Kong could be an option for the listing, but the firm has yet to work out the final details, the source added.
China''s home furnishing market is crowded with hundreds of players, from industry giant Home Depot Inc. and Kingfisher''s B&Q to local players such as Yuexing Group.
The
move marks Warburg Pincus'' latest acquisition attempt
in China, where outside investors — including Goldman
Sachs and Carlyle — are racing to buy into some
of the country''s top performers.
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