Hanoi: Bach Hoa Xanh, a subsidiary of Mobile World Investment Corporation (MWG), recently announced that it has successfully completed a private placement deal to sell a 5% stake to CDH Investment.
According to the initial plan, Bach Hoa Xanh had aimed to sell a maximum of 20% of its capital. However, the company has stated that due to positive cash flow and improved business performance, there is no longer a need to proceed with the sale as initially planned.
The value of the deal was not disclosed, but it mentioned that the funds would be utilised for operational activities and business expansion.
Bach Hoa Xanh is a retail chain specialising in food and essential consumer goods, operating under MWG.
Established in 2015, the chain was expected to generate billion-dollar revenues and lead the domestic consumer retail sector. However, in its early stages, the company experienced continuous losses, accumulating a total of 8.3 trillion VND (332.6 million USD) in losses by the end of the previous year.
Howev
er, in the first two months of the year, Bach Hoa Xanh experienced the highest growth rate among the Mobile World systems. The chain achieved a revenue of nearly 6.1 trillion VND, up 47% year-on-year.
Despite operating for fewer days in February due to the Lunar New Year holiday, each Bach Hoa Xanh store generated an average revenue of 1.8 billion VND. With the impressive performance, the chain has successfully reached its expected breakeven point as planned.
Meanwhile, CDH Investment, established in 2022 and headquartered in Beijing, is among the first private equity fund management firms in China. It is well-known for its involvement in traditional sectors such as consumer goods and manufacturing. With over 27 billion USD in assets under management, the firm has invested in more than 350 companies across various industries./.
Source: Vietnam News Agency