CDH Investments Acquires 5% of Bach Hoa Xanh

Consumer Staples Author: EqualOcean News, ChenZhiheng、JiangShan Apr 12, 2024 02:12 PM (GMT+8)

According to news on April 9th, CDH Investments, headquartered in Beijing, successfully finalized the acquisition of a 5% stake in the Vietnamese retail chain Bach Hoa Xanh, resulting in an immediate surge in stock prices. Bach Hoa Xanh, owned by MWG, specializes in food and consumer essentials retail and was established in 2015. Presently, it operates approximately 1,700 stores across southern and south-central Vietnam.

At the close of trading on April 9th, CDH Investments' acquisition prompted a notable 5.6% increase in MWG's share price, reaching 52,800 VND, with matched orders reaching as high as 19.5 million. MWG's board of directors for 2024 anticipates the company's comprehensive net income for the year to reach VND 125 trillion, marking a 6% increase from 2023. Additionally, they expect comprehensive post-tax profits to reach 2.4 trillion VND, reflecting an impressive surge of 1,329%. Furthermore, MWG's liquidity in this transaction significantly surpassed the average trading volume in the previous quarter. Inclusive of share option transactions, the total value of MWG shares transferred in this deal approached nearly 1.1 trillion VND.

CDH Investments, established in 2002, is led by Chairman Wu Shangzhi and stands as one of China's earliest private equity investment firms. Currently, the company manages assets exceeding $27 billion. Thomas Lanyi, heading CDH Southeast Asia, commented, "Vietnam stands as a pivotal market for CDH in Southeast Asia. The evolving preferences of Vietnamese consumers, leaning towards modern supermarkets, render Bach Hoa Xanh an exemplary asset."

This acquisition not only underscores CDH Investments' commitment to the Vietnamese market but also furnishes robust backing for MWG's expansion endeavors in Vietnam. With CDH Investments' involvement and the accompanying boost in market sentiment, MWG's prospects in the Vietnamese market are met with considerable anticipation.