--FILE--View of the stand of South Beauty Group during an exhibition in Beijing, China, 7 December 2013.
High-end restaurant chain operator South Beauty Investment Co has sold its majority stake to private equity firm CVC Capital Partners, a source from the companys public relations department confirmed with the Global Times Tuesday (29 April 2014). Terms of the deal were not disclosed. But in October 2013, media reported that CVC was planning to acquire 69 percent of South Beauty for $300 million. The company will tap the market in second- and third-tier cities in future, as its presence is mainly in first-tier cities, a staff member from the PR department surnamed Wu told the Global Times. South Beauty founder Zhang Lan will remain the companys chairwoman and is still one of the companys shareholders. Investment firm CDH Investments bought a 10.5 percent stake in the restaurant chain for 200 million yuan ($31.96 million) in 2008, and the investment only stands on condition that South Beauty could get listed by the end of 2012, media said. In March 2011, the company filed an IPO application with the China Securities Regulatory Commission, but the commission ended its review process of the companys IPO in January 2012.South Beauty is valued at 2.7 billion yuan based on the reported purchasing price.