Vietnam electronics retailers Mobile World and Tran Anh Digital plan to merge before the end of this week.

Shareholder approval is needed for Tran Anh to sell a 25 per cent stake to Mobile World, with the deal expected to go ahead a few weeks ago, Mobile World general director Nguyen Duc Tai revealed at a company meeting.

Meanwhile, Mobile World shareholders boosted the company’s mergers-and-acquisitions (M&A) budget to VND2.5 trillion (more than US$110 million) – a five-fold increase over the amount previously approved – to be mobilised from loans, bonds, new shares and undistributed profits.

Mobile World will issue an extra 6.7 million shares, worth VND67 billion and equivalent to 2.18 per cent of its outstanding shares, to 10 investors in a private placement.

There has been media speculation the share issue has been designed with Tran Anh Digital’s stakeholders in mind. One of the nation’s largest electronic chains, it has 39 supermarkets. In this year’s first quarter the company, based in the north of the country, had net revenue of  VND1.05 trillion, a 4 per cent decline year on year.

Mobile World is Vietnam’s biggest electronics and mobile devices retailer. For its first half this year, its 1500 retail stores had VND31.2 trillion in sales, up 59 per cent, with net profit reaching VND1.06 trillion.

Commentators say the merger would help Mobile World expand in Vietnam’s north while boosting profits for Tran Anh Digital.