MINISO Group, a value retailer offering lifestyle products featuring IP design, has signed share purchase agreements with shareholders of Chinese retailer Yonghui Superstores.
MINISO will acquire a 29.4% stake in Yonghui for 6.3bn yuan ($893.14m), making it the largest single shareholder of Yonghui.
Yonghui Superstores, listed on the Shanghai Stock Exchange since 2010, operates 850 supermarkets across China.
The company is known for integrating fresh produce into modern retail and has maintained its position as the second-largest supermarket chain in China in terms of sales.
The share purchase agreements were signed with Guangdong Juncai International Trading, a subsidiary of MINISO, and the respective sellers.
The sellers include the Dairy Farm Company, a subsidiary of DFI Retail Group Holdings, and entities indirectly owned by JD.com.
Guangdong Juncai will pay a per-share price of 2.35 yuan, a 3.1% premium over Yonghui's share price as of 20 September 2024.
MINISO plans to fund the acquisition through internal resources and external financing.
MINISO chairman and CEO Guofu Ye said: "I firmly believe that this transaction presents great growth potential for our company and will bring long-term value to our shareholders. With our support and leveraging our expertise in design-led products, Yonghui will be poised to develop higher-quality self-branded products to cater to evolving consumer needs.
“Furthermore, I believe that our collaboration with Yonghui in retail channel upgrade and supply chain will enable us to share resources to further enhance economies of scale, optimise the cost structure and create value for consumers.
“This transaction will also expand our access to the essential goods sector, allowing us to diversify our business and mitigate cyclical risks."
The acquisition is contingent upon regulatory approvals, including antitrust clearance from the State Administration for Market Regulation of China, and shareholder consent.
It is expected to close in the first half of 2025.
Following the transaction, Guangdong Juncai will adhere to legal sell-down restrictions regarding the acquired shares.
Miniso recently opened its first Sanrio [a Japanese entertainment company]-themed store in George Street, Sydney, Australia.
