Chinese alternative asset manager CDH Investment has bought a 5 per cent stake in Vietnam Mobile World Group’s grocery business, Bach Hoa Xanh (BHX) for US$72.17 million.
“This transaction marks the second time CDH partners with the Mobile World Group,” said Thomas Lanyi, head of Southeast Asia, CDH Investment.
“We are hugely confident about the future of modern retail in Vietnam and couldn’t dream of a better operator to capture the opportunity with.”
Bach Hoa Xanh reportedly planned to sell up to 20 per cent of its capital at first. However, the company stated that due to healthy cash flow and improved business outcomes, there was no need for the previously planned offering.
According to Reuters, the Beijing-based business was in advanced talks to acquire a minority stake in Bach Hoa Xanh (BHX) in February, in a deal that would value the grocery chain at up to $1.7 billion.
CDH dropped its Mobile World venture more than 10 years ago to cash in on its profits. BHX, which was launched in 2015, had stores across Vietnam’s southern and south-central provinces and was projected to be profitable by this year.
