Singapore's GIC acquires stake at third largest Vietnamese grocery chain
VOV.VN - The Singaporean sovereign wealth fund GIC is among the investors vying to buy up to 20% stake in grocer Bach Hoa Xanh of Vietnamese retail giant Mobile World Investment in a deal that could value the grocery chain at up to US$1.7 billion, reported Reuters.
Reuters quoted sources saying relevant parties are putting the finishing touches to the deal which is expected to close soon.
The deal is anticipated to see intensified competition among domestic and foreign retailers seeking to expand or gain a foothold in the market of 100 million consumers.
Vietnam has attracted strong investor interest as companies seek to reconfigure global supply chains as a result of geopolitical tensions between China and the United States.
Founded in 2015, Bach Hoa Xanh is backed by Vietnamese retail giant Mobile World Investment and is running more than 1,700 stores throughout the southern and south-central provinces.
Mobile World decided in recent months to press ahead with the planned sale after putting it on hold earlier this year due to unfavourable market conditions. The Ho Chi Minh City-headquartered company first planned the sale of a stake of up to 20% in Bach Hoa Xanh last year.
Bach Hoa Xanh is expected to be profitable from next year, its managing director told financiers last month.
Its net loss in the first half of this year shrank to US$26.98 million from a full-year loss of US$123.03 million recorded in 2022. Indeed, revenue in the first half of the year rose by 7% year on year to US$557.72 million.
