Yesterday, MINISO released an announcement stating that it will acquire a 29.4% stake in Yonghui Superstores for approximately 6.3 billion yuan ($892.1 million). This includes a 21.1% stake held by Dairy Farm and an 8.3% stake held by JD.
This transaction will make MINISO the largest single shareholder of the supermarket chain.
According to MINISO’s announcement, the buyer (a wholly-owned subsidiary of the company) has entered into a share purchase agreement with Dairy Farm, JD International Trade, and Suqian Hanbang. Under this agreement, the buyer has conditionally agreed to purchase, and the sellers have conditionally agreed to sell, 2.668 billion target shares (approximately 29.4% of Yonghui Superstores’ total issued share capital) for a consideration of 6.27 billion yuan ($887.9 million).
It is understood that Yonghui Superstores is a Chinese chain supermarket operator specializing in fresh produce. It mainly operates large comprehensive supermarkets, superstores, and community supermarkets, with a total of around 850 stores across more than 25 provinces and municipalities in China.
MINISO’s Chairman and CEO, Ye Guofu, stated that acquiring these shares will enable the company to expand its business in the daily necessities sector.
Mr. Ye said: “With our support and our expertise in design-driven products, Yonghui will be ready to develop higher-quality private label products to meet the evolving needs of consumers.”
“Furthermore, I believe our cooperation with Yonghui in retail channel upgrades and supply chain improvements will allow us to share resources, further enhance economies of scale, optimize cost structures, and create value for consumers.”
MINISO is a Chinese retailer and variety store chain that specializes in household and consumer goods including cosmetics, stationery, toys, and kitchenware featuring IP design. It is famous for its low price and variety of products. Its headquarters are in Haizhu District, Guangzhou.
MINISO’s latest financial report shows that in the first half of 2024, the group generated 5.027 billion yuan ($711.9 million) in revenue in China, a year-on-year increase of 17.2%. Meanwhile, overseas revenue recorded 2.732 billion yuan ($386.9 million), with a year-on-year growth rate of 42.6%. As of the end of the second quarter this year, the group had a total of over 7,000 stores worldwide (including MINISO and TOP TOY). As of the end of June, MINISO’s overseas store count reached 2,753, a year-on-year increase of 26%.
