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Investors focus on catering company

By Cai Xiao | chinadaily.com.cn | Updated: 2013-10-16 08:46

China-focused equity investment firm IDG Capital Partners and Huazhu Hotels Group Co invested 350 million yuan ($57.33 million) in China Quanjude Co Ltd, according to an announcement from the listed catering company on Monday.

The announcement said that IDG would own 5.78 percent shares of Quanjude after investing 250 million yuan and would become the second-largest shareholder of the company.

The funds raised will be invested in programs, including setting up a food production base, central kitchen as well as a Shanghai restaurant.

Industry experts said the investment from IDG showed that Quanjude has strong potential, but cultural differences may arise between IDG and the Chinese catering company.

China Quanjude Co Ltd was listed on the Shenzhen Stock Exchange in 2007.

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