Prnewswireยท2024-09-23 12:00Core Viewpoint - MINISO Group has announced the acquisition of 29.4% of Yonghui Superstores for approximately RMB6.3 billion, positioning itself as the largest single shareholder of Yonghui upon completion of the transaction [1][2]. Company Overview - MINISO Group is a global value retailer known for trendy lifestyle products featuring IP design, with a significant store network established since its inception in 2013 [9]. - Yonghui Superstores, a leading retail chain in China, operates around 850 supermarkets and generated approximately RMB78.6 billion in revenue in 2023 [2]. Transaction Details - The share purchase agreements involve Guangdong Juncai International Trading Co., Ltd., a wholly owned subsidiary of MINISO, acquiring shares from various sellers, including subsidiaries of JD.com and DFI Retail Group [3][4]. - The per share price for the acquisition is set at RMB2.35, reflecting a 3.1% premium over Yonghui's closing price on September 20, 2024 [4]. - Funding for the transaction will come from a mix of internal resources and external financing [4]. Strategic Implications - The acquisition is expected to enhance MINISO's growth potential and long-term value for shareholders, allowing for the development of higher-quality self-branded products and improved supply chain collaboration with Yonghui [5]. - The company aims to achieve a compound annual growth rate of no less than 20% in its core business over the next five years, excluding the impact of this transaction [5]. Regulatory Considerations - The transaction is subject to customary closing conditions, including antitrust clearance and shareholder approval, with an expected closing in the first half of 2025 [6].