Chinese company acquires 5-percent stake in Vietnam’s grocery chain Bach Hoa Xanh
Chinese company acquires 5-percent stake in Vietnam’s grocery chain Bach Hoa Xanh
Vietnam’s largest retail group, Mobile World, announced that it completed transferring five percent of the total shares in grocery chain Bach Hoa Xanh to Beijing-headquartered CDH Investments.
China’s CDH Investments buys a five-percent stake in Vietnam’s grocery chain Bach Hoa Xanh. Photo: MWG |
On Tuesday, CDH Investments also confirmed it completed an investment for a minority interest in Bach Hoa Xanh.
The deal’s value is VND1.8 trillion (US$72.17 million), Reuters reported, citing a letter to CDH from the Ho Chi Minh City investment agency.
According to Mobile World, it canceled a plan to sell 20 percent of Bach Hoa Xanh’s shares and offered a five-percent stake instead due to the chain’s positive money flow and business performance.
The group earlier announced it would sell its shares in Bach Hoa Xanh in 2022 but delayed the plan due to unfavorable market conditions.
CDH Investments, one of China's earliest private equity firms, is best known for its dealmaking in traditional industries such as consumption and manufacturing.
It has over $27 billion in assets under management and has been an investor in pork supplier WH Group and appliance maker Midea Group, according to Reuters.
Meanwhile, Bach Hoa Xanh, which specializes in selling fresh food and vegetables, has some 1,700 stores in southern and south‐central Vietnam.
Mobile World looks to earn VND125 trillion ($5 billion) in net revenue and VND2.4 trillion ($96 million) in consolidated after-tax profit this year, up six and 1,329 percent, respectively.
Bach Hoa Xanh is expected to contribute 30 percent of Mobile World’s revenue, according to documents for Mobile World’s 2024 shareholder meeting.
