Is China's largest private supermarket about to change ownership? No, it's just a change of major shareholder.
On the evening of September 23rd, Yonghui Supermarket and Miniso announced that Juncai International, controlled by Miniso, plans to acquire 29.4% equity of Yonghui Supermarket for 6.27 billion yuan. After the acquisition is completed, Juncai International will become the largest shareholder of Yonghui Supermarket.
Compared to the old shareholders who are eager to sell, Ye Guofu, the founder of Miniso, is as happy as if he has picked up a bargain. He said during an investor conference call, "Yonghui's price is currently at its lowest point, and many people cannot understand it. If everyone can understand it, I definitely won't have a chance
In fact, Miniso focuses on Yonghui Supermarket's existing channels of over 850 stores across the country, as well as the drainage effect of Yonghui Supermarket's learning from the transformation of Pangdong. In the short term, this investment will bring opportunities for Miniso to add hundreds of new stores, and at the same time, Yonghui Supermarket's own brand household goods category will also become an effective increment to Miniso's existing business.
However, the capital market is not optimistic about Ye Guofu's "bottom fishing" action. After the announcement was made, the stock price of Miniso plummeted, with the US stock opening down about 18% and the Hong Kong stock opening down over 38%.