Wangfujing purchases large stake in PCD

Wangfujing Department Store announced on Monday its purchase of nearly 40 percent of high-end counterpart PCD Stores, according to China Securities Journal.

The transaction will be completed by Friday.

Wangfujing signed a stock transfer agreement on Jan 24 with PCD's two major stakeholders, Bluestone and PGL, through a wholly owned subsidiary in the Cayman Islands.

The agreement stated that Wangfujing would purchase 39.53 percent of PCD's equities at nearly HK$2 billion ($257 million). The purchase has been approved by authorities in China.

Wangfujing has 30 stores throughout China. In the first quarter of 2013, it attributed 221 million yuan ($35.64 million) in net profit to shareholders, up 3.74 percent from the same period the previous year.

PCD has 13 stores and three outlets, registering 5.4 billion yuan in sales in 2012, a year-on-year growth of 12.7 percent.

The purchase will make Wangfujing the third largest store, by store numbers, after Wanda and Parkson.