Chinese online retailer Yesmywine has confirmed that Googut Wine & Spirits Co. Ltd, a Chinese drinks company known for vintage baijiu, has agreed to acquire a shareholding in its business.
Yesmywine is understood to be hoping to use the investment as a window of opportunity to seek a listing on the domestic stock exchange.
Precise financial details of the deal have not been disclosed, nor has the specific size of the stake acquired by Googut Wine & Spirits.
‘This is just a capital operation,’ Aline Bao, vice president of Yesmywine told DecanterChina.com. ‘We are still waiting for the [regulatory] approval.’
According to Bao, Yesmywine originally planned to be listed on NASDAQ stock exchange in the US. Earlier investments in the business had been made in dollars with this in mind.
But, due to the recent high value of so-called A-shares in China – which are generally restricted to domestic investors – Yesmywine decided to re-focus and has sought to gain more domestic funding.
Bao added that Yesmywine believes that it and Googut will ‘complement each other’. The retailer is interested in the Chinese baijiu market, as well as Googut’s wealthy customers, while Googut gets better access to China’s emerging wine retail sector.
‘This acquisition will not affect the independent development of Yesmywine, and the wine consumers will not feel any changes,’ Bao said.
(Edited by Chris Mercer)
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