Miniso in supermarket move

Bloomberg

Low-cost retailer Miniso (9896 ) plans to acquire a significant stake in supermarket chain Yonghui Superstores for 6.27 billion yuan (HK$6.92 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 yesterday.

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 percent stake in Yonghui from DFI Retail Group's the Dairy Farm Company and two units of JD.com (9618).

Miniso is offering 2.35 yuan for each share, which represents a premium of about 4.4 percent compared to the closing price yesterday, 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.