LOW-COST retailer Miniso Group Holding plans to acquire a significant stake in supermarket chain operator Yonghui Superstores for 6.27 billion yuan (S$1.1 billion) to build on its presence in China.
“The acquisition will expand the group’s investment and operational channels in the daily necessities retail business, enabling the group to diversify its cyclical business risks, which is of significant strategic importance,” Miniso said in a statement to the Hong Kong stock exchange late on Monday (Sep 23).
Yonghui operates about 850 stores across more than 25 provinces in mainland China. The Shanghai-listed company posted a net loss of 1.36 billion yuan during 2023 as revenue declined from a year earlier.
Miniso plans to buy a 29.4 per cent stake in Yonghui from DFI Retail Group Holdings’ the Dairy Farm, and two units of JD.com Miniso is offering 2.35 yuan for each share, which represents a premium of about 4.4 per cent compared to the closing price on Monday, according to Bloomberg calculations.
Miniso expects to become the largest shareholder of Yonghui after completion of the deal, which is subject to regulatory and shareholder approvals. BLOOMBERG
