Recently, media reports have revealed new developments in the acquisition case of Beijing SKP, known as the “world’s top-performing department store.”
The Beijing Municipal Administration for Market Regulation disclosed that Boyu Capital’s fifth U.S. dollar fund (hereinafter referred to as Boyu Capital), through its affiliates, plans to acquire a portion of the equity in Beijing SKP. After the transaction, Boyu Capital’s affiliated entities will indirectly hold a 42%–45% stake in Beijing SKP as a financial investment. The transaction amount has not yet been disclosed.
According to the disclosure, before the transaction, Radiance Investment Holdings Pte. Ltd. held 60% (both directly and indirectly) and Beijing Hualian Group Investment Holding Co., Ltd. held 40% of Beijing SKP. The company was jointly controlled by Radiance and Hualian Group.
After the transaction, Radiance will continue to indirectly hold 42%–45% of Beijing SKP’s equity and retain control of the company. Beijing SKP’s operational and management structure will remain unchanged. Boyu Capital’s affiliate will also indirectly hold 42%–45% of the shares and jointly control Beijing SKP alongside Radiance.
Public records show that Boyu Capital was established in Singapore on March 30, 2021, and mainly engages in private equity investment. The ultimate controlling entity of Boyu Capital is Boyu Group, LLC (collectively referred to with its controlled investment entities as “Boyu Investment”). Boyu Investment is an alternative asset management company. Radiance was established in Singapore on September 14, 2011, and primarily operates as an investment holding company.
According to earlier media reports, Beijing Hualian Group Investment Holding Co., Ltd. was close to reaching an agreement with Boyu Capital to sell Beijing Hualian SKP Department Store Co., Ltd. This includes the company responsible for managing and operating SKP’s high-end commercial operations and its physical mall assets. The entire SKP business is reportedly valued at $4–5 billion.
Beijing SKP has ranked as the national sales leader for consecutive years. In 2020, its sales reached RMB 17.7 billion ($2.44 billion), surpassing the world-renowned Harrods department store and earning it the title of “world’s top-performing store.” In 2023, Beijing SKP achieved record-breaking sales of RMB 26.5 billion ($3.67 billion).
However, despite hitting new sales records, Beijing SKP’s growth rate has been slowing in recent years. Reports noted that around 2021, SKP’s sales were growing rapidly—RMB 12.5 billion in 2017, a year-on-year increase of 30%, and nearly RMB 24 billion ($3.3 billion) in 2021, up 35% year-on-year. But by 2022, sales declined slightly to RMB 23.9 billion ($3.3 billion) compared to the previous year, and in 2023, sales increased by only around 10% year-on-year.
