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MINISO to Acquire Stake in Yonghui Superstores, a Leading Chinese Retailer

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MINISO Group announced a significant acquisition, entering into share purchase agreements to acquire 29.4% of Yonghui Superstores for RMB6.3 billion. This transaction will make MINISO the largest single shareholder of Yonghui, a leading retail chain in China with approximately 850 supermarkets and 2023 revenue of RMB78.6 billion. The acquisition involves purchasing shares from subsidiaries of DFI Retail Group Holdings and JD.com. The purchase price of RMB2.35 per share represents a 3.1% premium to Yonghui's recent closing price. The deal, expected to close in the first half of 2025, is subject to regulatory approvals and shareholder consent. MINISO plans to fund the acquisition through internal resources and external financing. The company aims to leverage this acquisition to enhance economies of scale, optimize cost structures, and diversify its business portfolio.

MINISO Group ha annunciato un'importante acquisizione, entrando in accordi di acquisto azionario per acquisire il 29,4% di Yonghui Superstores per 6,3 miliardi di RMB. Questa transazione renderà MINISO il più grande azionista singolo di Yonghui, una catena di vendita al dettaglio di riferimento in Cina con circa 850 supermercati e un fatturato nel 2023 di 78,6 miliardi di RMB. L'acquisizione comporta l'acquisto di azioni da sussidiarie di DFI Retail Group Holdings e JD.com. Il prezzo d'acquisto di 2,35 RMB per azione rappresenta un premio del 3,1% rispetto all'ultimo prezzo di chiusura di Yonghui. L'accordo, che dovrebbe chiudersi nella prima metà del 2025, è soggetto ad approvazioni normative e al consenso degli azionisti. MINISO prevede di finanziare l'acquisizione attraverso risorse interne e finanziamenti esterni. L'azienda mira a sfruttare questa acquisizione per migliorare le economie di scala, ottimizzare le strutture dei costi e diversificare il proprio portafoglio aziendale.

MINISO Group anunció una adquisición significativa, entrando en acuerdos de compra de acciones para adquirir el 29,4% de Yonghui Superstores por 6,3 mil millones de RMB. Esta transacción convertirá a MINISO en el mayor accionista individual de Yonghui, una cadena de retail líder en China con aproximadamente 850 supermercados y unos ingresos de 78,6 mil millones de RMB en 2023. La adquisición implica la compra de acciones de subsidiarias de DFI Retail Group Holdings y JD.com. El precio de compra de 2,35 RMB por acción representa una prima del 3,1% sobre el precio de cierre reciente de Yonghui. El acuerdo, que se espera cerrar en la primera mitad de 2025, está sujeto a aprobaciones regulatorias y al consentimiento de los accionistas. MINISO planea financiar la adquisición a través de recursos internos y financiamiento externo. La compañía busca aprovechar esta adquisición para mejorar las economías de escala, optimizar las estructuras de costos y diversificar su cartera de negocios.

MINISO Group는 중대한 인수 소식을 발표하며, 29.4%의 Yonghui Superstores 주식을 63억 RMB에 인수하기 위한 주식 매매 계약을 체결했습니다. 이 거래로 MINISO는 약 850개의 슈퍼마켓과 2023년 수익 786억 RMB를 가진 중국의 주요 소매 체인 Yonghui의 최대 단일 주주가 됩니다. 인수에는 DFI Retail Group HoldingsJD.com의 자회사로부터 주식을 매입하는 것이 포함됩니다. 주당 2.35 RMB의 매입 가격은 Yonghui의 최근 종가에 비해 3.1%의 프리미엄을 나타냅니다. 이 거래는 2025년 상반기 내에 마무리될 것으로 예상되며, 규제 승인 및 주주 동의가 필요합니다. MINISO는 내부 자원과 외부 자금을 통해 인수 자금을 조달할 계획입니다. 이 회사는 인수를 활용하여 규모의 경제를 향상시키고, 비용 구조를 최적화하며, 비즈니스 포트폴리오를 다양화하는 것을 목표로 하고 있습니다.

MINISO Group a annoncé une acquisition significative, concluant des accords d'achat d'actions pour acquérir 29,4% de Yonghui Superstores pour 6,3 milliards de RMB. Cette opération fera de MINISO le plus grand actionnaire individuel de Yonghui, une chaîne de distribution leader en Chine avec environ 850 supermarchés et un chiffre d'affaires de 78,6 milliards de RMB en 2023. L'acquisition implique l'achat d'actions auprès de filiales de DFI Retail Group Holdings et JD.com. Le prix d'achat de 2,35 RMB par action représente une prime de 3,1% par rapport au dernier prix de clôture de Yonghui. L'accord, qui devrait être finalisé au cours du premier semestre 2025, est soumis à des approbations réglementaires et au consentement des actionnaires. MINISO prévoit de financer l'acquisition par des ressources internes et un financement externe. L'entreprise a pour objectif de tirer parti de cette acquisition pour améliorer les économies d'échelle, optimiser les structures de coûts et diversifier son portefeuille d'activités.

MINISO Group hat eine bedeutende Übernahme angekündigt und Vereinbarungen zum Kauf von Aktien unterzeichnet, um 29,4% von Yonghui Superstores für 6,3 Milliarden RMB zu erwerben. Diese Transaktion wird MINISO zum größten Einzelaktionär von Yonghui machen, einer führenden Einzelhandelskette in China mit etwa 850 Supermärkten und einem Umsatz von 78,6 Milliarden RMB im Jahr 2023. Der Erwerb umfasst den Kauf von Aktien von Tochtergesellschaften der DFI Retail Group Holdings und JD.com. Der Kaufpreis von 2,35 RMB pro Aktie stellt eine Prämie von 3,1% zum jüngsten Schlusskurs von Yonghui dar. Der Deal, der in der ersten Jahreshälfte 2025 abgeschlossen werden soll, unterliegt regulatorischen Genehmigungen und der Zustimmung der Aktionäre. MINISO plant, die Übernahme durch interne Ressourcen und externe Finanzierung zu finanzieren. Das Unternehmen beabsichtigt, diese Übernahme zu nutzen, um Skaleneffekte zu verbessern, Kostenstrukturen zu optimieren und das Geschäftsumfeld zu diversifizieren.

Positive
  • MINISO to become the largest shareholder of Yonghui, a top Chinese retailer.
  • Acquisition price of RMB6.3 billion, at a 3.1% premium.
  • Yonghui's 2023 revenue was RMB78.6 billion.
  • Potential for enhanced economies of scale and cost optimization.
  • Diversification into the essential goods sector.
Negative
  • Transaction subject to regulatory and shareholder approvals.
  • Potential financial strain due to the RMB6.3 billion acquisition cost.

GUANGZHOU, China, Sept. 23, 2024 /PRNewswire/ -- MINISO Group Holding Limited (NYSE: MNSO; HKEX: 9896) ("MINISO", "MINISO Group" or the "Company"), a global value retailer offering a variety of trendy lifestyle products featuring IP design, today announced that it has entered into share purchase agreements with certain shareholders of Yonghui Superstores Co., Ltd ("Yonghui"), to acquire an aggregate of 29.4% of the issued and outstanding shares of Yonghui for a total cash consideration of approximately RMB6.3 billion. Upon the consummation of the transaction, the Company expects to become the largest single shareholder of Yonghui.

Yonghui is a leading retail chain operator in China, listed on the Shanghai Stock Exchange (stock code: 601933) since 2010. It operates approximately 850 supermarkets, offering fresh produce and daily necessities to consumers across China. Yonghui is one of the first distribution enterprises in the PRC to introduce fresh produce into modern supermarkets. In terms of sales scale, it has consistently ranked second among the top 100 supermarkets in the PRC in recent years. In 2023, Yonghui generated approximately RMB78.6 billion in revenue.

The share purchase agreements were entered into between Guangdong Juncai International Trading Co., Ltd., a wholly owned PRC subsidiary of the Company ("Guangdong Juncai"), and the respective sellers. The Dairy Farm Company, Limited, the seller under one of the share purchase agreements, is an indirectly wholly-owned subsidiary of DFI Retail Group Holdings Limited, which is a member of the Jardine Matheson Group. Beijing Jingdong Century Trade Co., Ltd. and Suqian Hanbang Investment Management Co., Ltd., the sellers under the other share purchase agreement, are both indirectly wholly-owned subsidiaries of JD.com, Inc. (NASDAQ Trading Symbol: JD; HKEX Stock Codes: 9618 (HKD counter) and 89618 (RMB counter)).

Pursuant to the share purchase agreements, at the closing of the transaction, Guangdong Juncai will pay to each seller a cash consideration based on a per share price of RMB2.35, which represents a premium of 3.1% to the closing price of Yonghui's shares on the Shanghai Stock Exchange on September 20, 2024. The Company expects to fund the transaction with a combination of internal financial resources and external financing.

Concurrently with the execution of the share purchase agreements, the Company entered into parent guarantees to guarantee the due performance of Guangdong Juncai of its obligations under the share purchase agreements. Additionally, Mr. Guofu Ye, Chairman, CEO and the controlling shareholder of the Company, has given an irrevocable undertaking to each of the sellers under the share purchase agreements to vote in favor of any resolution approving the transaction at the Company's shareholder meetings.

Mr. Ye commented, "I firmly believe that this transaction presents great growth potential for our company and will bring long-term value to our shareholders. With our support and leveraging our expertise in design-led products, Yonghui will be poised to develop higher-quality self-branded products to cater to evolving consumer needs. Furthermore, I believe that our collaboration with Yonghui in retail channel upgrade and supply chain will enable us to share resources to further enhance economies of scale, optimize the cost structure and create value for consumers. This transaction will also expand our access to the essential goods sector, allowing us to diversify our business and mitigate cyclical risks."

"Meanwhile, we remain confident in and committed to the growth of our existing business, and will continue to strategically invest in its development and expansion. We are determined to achieve MINISO's five-year development strategy of growing our core business at a compound annual growth rate of no less than 20% over the next five years, excluding the potential impact of this transaction." Mr. Ye concluded.

The transaction is subject to customary closing conditions, including obtaining antitrust clearance from the State Administration for Market Regulation of China, securing or completing other necessary regulatory approvals or procedures, as well as receiving the approval of the Company's shareholders. The Company currently expects the transaction to close in the first half of 2025. Under the share purchase agreements, Guangdong Juncai undertakes to comply with the sell-down restrictions under the applicable laws with respect to the acquired Yonghui shares following the completion of the transaction.

Conference Call

To further respond to any inquiries in relation to the transaction and enhance communication with shareholders regarding this matter, the Company's management will hold a conference call at 9:00 A.M. Eastern Time on Monday, September 23, 2024 (9:00 P.M. Beijing Time on the same day). Simultaneous interpretation in English will be provided during the conference call. The conference call can be accessed by the following Zoom link or dialing the following numbers:

Access 1 

Join Zoom meeting.

Zoom link: https://zoom.us/j/97701897671?pwd=QonqKR3bonhLkDOCVkXgRk01NXUvPX.1
Meeting Number:  977 0189 7671
Meeting Passcode: 9896

Access 2

Listeners may access the conference call by dialing the following numbers with the same meeting number and passcode as access 1.

United States: 





+1 689 278 1000 (or +1 719 359 4580)

Hong Kong, China:    





 +852 5803 3730 (or +852 5803 3731)

France:    





+33 1 7037 9729 (or +33 1 7037 2246)

Singapore:  





+65 3158 7288 (or +65 3165 1065)

Canada:  





+1 438 809 7799 (or +1 204 272 7920)

As the completion of the transaction is subject to the satisfaction or waiver (where applicable) of certain conditions precedent, the transaction may or may not proceed. Shareholders and potential investors of the Company are advised to exercise caution when dealing in the securities of the Company.

About MINISO Group

MINISO Group is a global value retailer offering a variety of trendy lifestyle products featuring IP design. The Company serves consumers primarily through its large network of MINISO stores, and promotes a relaxing, treasure-hunting and engaging shopping experience full of delightful surprises that appeals to all demographics. Aesthetically pleasing design, quality and affordability are at the core of every product in MINISO's wide product portfolio, and the Company continually and frequently rolls out products with these qualities. Since the opening of its first store in China in 2013, the Company has built its flagship brand "MINISO" as a globally recognized consuming brand and established a massive store network worldwide. For more information, please visit https://ir.miniso.com/.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "anticipate", "aim", "estimate", "intend", "plan", "believe", "is/are likely to", "potential", "continue" or other similar expressions. MINISO may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC") and The Stock Exchange of Hong Kong Limited (the "HKEX"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about MINISO's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: MINISO's mission, goals and strategies; future business development, financial conditions and results of operations of MINISO and Yonghui; the expected growth of the retail market and the markets of branded variety retail of lifestyle products and fresh produce and necessity goods in China and globally; expectations regarding demand for and market acceptance of MINISO's and Yonghui's products; expectations regarding MINISO's relationships with consumers, suppliers, MINISO Retail Partners, local distributors, and other business partners; competition in the industry; and relevant government policies and regulations relating to MINISO's and Yonghui's business and the industry. Further information regarding these and other risks is included in MINISO's filings with the SEC and the HKEX. All information provided in this press release and in the attachments is as of the date of this press release, and MINISO undertakes no obligation to update any forward-looking statement, except as required under applicable law.

Investor Relations Contact:

Raine Hu
MINISO Group Holding Limited
Email: ir@miniso.com
Phone: +86 (20) 36228788 Ext.8039

Cision View original content:https://www.prnewswire.com/news-releases/miniso-to-acquire-stake-in-yonghui-superstores-a-leading-chinese-retailer-302255519.html

SOURCE MINISO Group Holding Limited

FAQ

What percentage of Yonghui Superstores is MINISO acquiring?

MINISO is acquiring 29.4% of Yonghui Superstores.

How much is MINISO paying for the Yonghui Superstores stake?

MINISO is paying RMB6.3 billion for the 29.4% stake in Yonghui Superstores.

When is the Yonghui acquisition expected to close?

The acquisition is expected to close in the first half of 2025.

What is the significance of the RMB2.35 per share price for the Yonghui acquisition?

The RMB2.35 per share price represents a 3.1% premium to Yonghui's recent closing price.

How will MINISO fund the acquisition of Yonghui Superstores?

MINISO plans to fund the acquisition through a combination of internal financial resources and external financing.

MINISO Group Holding Limited American Depositary Shares, each representing four Ordinary Shares

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