MWG seeks to find strategic partner for Bach Hoa Xanh

April 01, 2022 | 17:24

(0) user say

A proposal to issue private equity shares of Bach Hoa Xanh (BHX) Trading JSC will be presented to Mobile World Group's (MWG) shareholders soon, according to the firm’s announcement.

MWG seeks to find strategic partner for Bach Hoa Xanh

The maximum offering rate is 20 per cent of BHX's total share capital, and the transaction is slated to be completed in 2022-2023.

Proceeds would be used to expand BHX’s distribution network, upgrade technology, and aid the development of online sales channels. Investors across the globe (with the exception of direct rivals in Vietnam) who make the highest offer to purchase BHX shares would be suitable partners.

In mid-March, MWG has officially entered into a joint venture with PT Erafone Artha Retailindo, a subsidiary of Erajaya Group in Indonesia, to form PT Era Blue Elektronic (Era Blue).

The first Era Blue store, slated to open in mid-2022 in Jakarta, focuses on consumer electronics. Era will not sell ICT products because Erafone dominates the market share of this segment. Era Blue stores will carry the latest products from well-known consumer electronics brands in a welcoming, modern environment.

Established in 1996, Erajaya engages in the distribution and retail of mobile telecommunication devices, such as mobile phones and tablets, SIM cards, accessories, and Google Play vouchers. Their market share in the ICT sector is claimed at 30 per cent in Indonesia, according to MWG's management.

The new cooperation with MWG is Era's fifth expansion venture. The company entered the cosmetic business via the acquisition of The Face Shop in 2020, food and beverage via minority shares in Sushi Tei and the Paris Baguette bakery franchise.

By Lam Tien

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional