MINISO to buy nearly 30% stake in China’s Yonghui

This acquisition will make MINISO the largest single shareholder of Yonghui.

MINISO Group has announced that it will acquire 29.4% of Yonghui Superstores Co., Ltd.  for approximately $892m (RMB6.3b). 

This acquisition will make MINISO the largest single shareholder of Yonghui.

Yonghui, a leading retail chain in China, operates around 850 supermarkets and generated approximately $11.13b (RMB78.6b) in revenue in 2023. 

The acquisition agreement involves Guangdong Juncai International Trading Co., Ltd., MINISO's wholly-owned subsidiary, purchasing shares from various sellers, including The Dairy Farm Company, Limited, and subsidiaries of JD.com, Inc. 

The per-share price of $0.33 (RMB2.35) reflects a 3.1% premium over Yonghui’s closing price on 20 September.

MINISO plans to finance the deal using a combination of internal resources and external funding. The transaction is subject to customary closing conditions, including regulatory approvals and shareholder consent, and is expected to close in the first half of 2025.

In conjunction with the share purchase agreements, MINISO provided parent guarantees to ensure Guangdong Juncai's obligations are met. 

Additionally, Miniso Chairman and CEO Guofu Ye has committed to vote in favor of the transaction at the upcoming shareholder meetings.

“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,” he said.

“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,” Ye added.

The deal is subject to customary closing conditions, including antitrust clearance from the State Administration for Market Regulation of China and approval from MINISO’s shareholders. 

The company anticipates the transaction will close in the first half of 2025, with Guangdong Juncai agreeing to adhere to sell-down restrictions regarding the Yonghui shares post-acquisition.