China’s CDH buys minority interest in Vietnam grocery chain Bach Hoa Xanh
CHINA’S CDH Investments said on Tuesday (Apr 9) that it completed an investment for a minority interest in grocery chain Bach Hoa Xanh, a unit of Vietnam’s biggest retail group by market value Mobile World.
The deal valued is at 1.8 trillion dong (S$97.2 million) and represents 5 per cent of the firm’s charter capital, showed a letter to CDH from the Ho Chi Minh City investment department seen by Reuters.
CDH and Mobile World did not immediately respond to requests seeking comment on the valuation.
The announcement confirms a Reuters’ report in February saying that CDH, one of China’s biggest alternative investment firms and also a former Mobile World investor, was in advanced talks to buy a minority stake in Bach Hoa Xanh.
Beijing-based CDH did not disclose financial details of the investment but said Mobile World will remain the controlling shareholder of Bach Hoa Xanh, next to CDH and the company’s management.
“Vietnam is one of CDH South-east Asia’s priority markets,” said Thomas Lanyi, head of South-east Asia for CDH.
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“Consumer needs are evolving in favour of modern alternatives to traditional wet markets and Bach Hoa Xanh is ideally positioned to capture this potential,” he said.
Bach Hoa Xanh, which specialises in selling fresh food and vegetables, commands a network of around 1,700 stores across southern and south-central Vietnam, the companies said.
Shares in its parent Mobile World were up 1.4 per cent in morning trade.
CDH, co-founded by chairman Wu Shangzhi in 2002 as 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 US$27 billion in assets under management and has been an investor in pork supplier WH Group and appliance maker Midea Group. REUTERS
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