China Resources Enterprise (CRE), the state-backed supermarket chain, is reportedly looking at options for its Hong Kong meat distribution unit, Ng Fung Hong, including a possible sale.
The move comes as the retailer seeks to bid for ParknShop supermarket business as well as use the proceeds to fund the future acquisitions.
Sources familiar with the matter were quoted by Bloomberg as saying that CRE would commence a strategic review of its meat business as early as this year.
Ng Fung Hong was acquired in a HK$5.13bn ($662m) deal by CRE in 2001. The company is engaged in imports of live cattle from the mainland as well as operates businesses including supermarkets and beverages.
In 2012, Ng Fung Hong recorded 11% decline in gross profit to HK$25m with sales of HK$396m, reports South China Morning Post.