Miniso Group Shares Fall on Yonghui Stake Purchase
By Don Nico Forbes
Shares in Miniso Group fell after the company agreed to purchase a 29.4% stake in Yonghui Superstores for about 6.3 billion Chinese yuan ($893.2 million), making it the company's largest shareholder.
Shares were recently down 14% at $14.14.
The Chinese retailer will pay 2.35 yuan for each Yonghui share, representing a 3.1% premium to the closing price on Sept. 20, and will fund the transaction through a combination of internal financial resources and external financing.
It said the purchase aims to expand Miniso's access to the essential goods sector, enabling diversification across the business and mitigating cyclical risks.
Yonghui operates roughly 850 supermarkets across China, generating about 78.6 billion yuan in revenue in 2023, Miniso said.
Write to Don Nico Forbes at don.forbes@wsj.com
(END) Dow Jones Newswires
September 23, 2024 09:45 ET (13:45 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
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