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Best Buy ups stake in Five Star

Apr. 17, 2007 (China Knowledge) – Best Buy, a U.S. electronics retailing giant aggressively expanding in the Mainland, has bought a further 20% of Jiangsu Five Star as it seeks to expand in second and third-tier cities,

The company increased its stake in Five Star, an electronics retailer with 136 outlets, to 70% recently following its purchase of a 50% interest for US$180 million last year, sources told the South China Morning Post.

Best Buy China chairman Lu Weimin declined to confirm the deal, saying only that it has a controlling stake in the Nanjing-based retailer.

New York-listed Best Buy, which opened its first self-branded store in Shanghai in December last year, plans to open up to three more such stores in first-tier cities this year, including Beijing and Shanghai, Lu said.


Lu said Best Buy would also expand the network of Five Star in second- and third-tier cities, including Yunnan and Xian.

Five Star will open up to 23 stores this year.


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