Mobile World Vietnam may take over competitor
Mobile World Vietnam, which sells mobile devices, is reportedly about to acquire electronics retailer Tran Anh Digital World.
Mobile World chairman Nguyen Duc Tai told a meeting last week that the company proposes to take over “an electronics retailer in the north of Vietnam”, without revealing details, says DealStreetAsia. It reports a source as saying Mobile World will seek shareholder approval this month for the transaction.
It the deal goes ahead, Tran Anh board members will join the board of Mobile World, while the company’s shareholders will be able to buy Mobile World shares at a discount.
Tran Anh’s outlets are mostly in the north of Vietnam. Japan’s Nojima Corporation is a strategic investor with 30.8 per cent holding.
Founded in 2004 as a mobile devices distribution company, Mobile World is Vietnam’s largest mobile device retailer with a 39 per cent market share. It set aside a budget of US$110 million this year for merger-and-acquisition activity, and in June launched into Cambodia under the name Big Phone.
At the end of June, Mobile World had more than 1500 stores, its main brand The Gioi Di Dong plus Bach Hoa Xanh (mini-supermarkets) and Dien May Xanh (electronic devices).
In its first-half trading this year, Mobile World achieved VND31.2 trillion (US$1.3 million) in revenue, representing a 59 per cent year-on-year increase, and a VND1.06 trillion after-tax profit, up 28 per cent.
Mobile World was funded by private equity firm Mekong Capital in 2007.