Chairman Nguyen Duc Tai's sister registered to sell 200,000 MWG shares
Shares jumped 39.6% from the bottom, leaders and relatives of Mobile World Investment Corporation (code MWG - HoSE floor) continuously registered to sell shares to reduce ownership.
Relatives and leaders simultaneously registered to sell a total of 1.4 million MWG shares
Ms. Nguyen Thi Thu Tam, sister of Mr. Nguyen Duc Tai, Chairman of the Board of Directors of Mobile World Company, registered to sell 200,000 MWG shares, reducing her ownership from 529,554 shares (0.036% of charter capital) to 329,554 shares (0.023% of charter capital), the transaction is expected to take place from March 14 to April 12.
In the context of the Chairman's relatives selling, from November 1, 2023 to March 7, 2024, MWG shares increased by 39.6%, from VND 35,100 to VND 49,000/share.
Additionally, from February 27 to March 27, Mr. Robert Alan Willett, a non-executive member of the Board of Directors of Mobile World Company, registered to sell 1.2 million MWG shares, reducing ownership from 0.548% to 0.466% of charter capital.
In the opposite direction, from November 8, 2023 to December 7, 2023, Mr. Tai bought 110,000 MWG shares out of a total registration of 1 million shares, equivalent to a successful purchase rate of 11% of the total registration to increase ownership from 2.4% to 2.41% of charter capital; and from December 12, 2023 to January 10, 2024, Mr. Tai continued to buy 200,000 shares out of a total registration of 500,000 shares, equivalent to a successful purchase rate of 40% of the total registration, increasing ownership from 2.41% to 2.42% of charter capital.
The reason given by Mr. Tai for not buying all registered shares was due to inappropriate market developments in the last two transactions.
CDH Investments wants to buy up to 10% of capital of Bach Hoa Xanh chain
Another notable development, according to Reuters, is that China's CDH Investments is in advanced negotiations to buy a minority stake in Bach Hoa Xanh from Mobile World Investment Corporation.
If the transaction is successful, the Bach Hoa Xanh chain could be valued at up to 1.7 billion USD.
According to research, CDH Investments is one of the largest companies focusing on alternative asset investment in China and has also invested in Mobile World Company.
“CDH Investments is looking to buy between 5% and 10% of the shares,” a source told Reuters, adding that discussions were ongoing and there was no certainty that a deal would be signed.
Another source said a deal "could be reached as early as next month if negotiations are successful."
The CDH Investments deal will underscore global investors' interest in Vietnam's rapidly growing business sectors, including consumer, despite difficulties in the real estate sector.
Mobile World Corporation - the parent company of the Bach Hoa Xanh chain - first announced plans to sell a minority stake in the retail chain in 2022 but later paused due to unfavorable market conditions.
Reuters reported at the time that the sale process was restarted last year and had attracted interest from sovereign wealth fund GIC and conglomerates from Thailand.
CDH Investments, co-founded by Chairman Wu Shangzhi in 2002 as one of China's earliest private equity firms, is known for its dealings in traditional industries such as consumption and manufacturing in its early years.
CDH Investments currently manages assets worth more than $27 billion and is a major investor in the world's largest pork supplier WH Group and leading home appliance manufacturer Midea Group.
One of the sources said that CDH Investments realized profits and withdrew from its investment in Mobile World nearly 10 years ago.
In addition, previously in January 2024, Mobile World Corporation approved the permission for its subsidiary, Bach Hoa Xanh Technology and Investment Joint Stock Company, to conduct a private offering of common shares to potential investors for the purpose of serving general business needs.
In which, the number of shares offered is expected to be from 5% to a maximum of 10% of the total number of shares and is expected to be implemented in the first half of 2024.
It is known that according to the original plan in 2022, Mobile World Company plans to offer up to 20% of shares in Bach Hoa Xanh Chain.
Thus, the new plan for the number of shares offered is lower, the reason given by the Company is due to positive business results and cash flow developments in 2023, so there is no need to mobilize capital up to 20% higher than the original plan.
Regarding the operations of the Bach Hoa Xanh chain, this unit was established in 2015, and by December 2023, the number of stores had increased to 1,698. Of which, by the end of 2023, this chain had suffered losses for the 8th consecutive year, with a loss value of VND 1,211 billion, bringing the total accumulated loss since its establishment to VND 8,605.96 billion.
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