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Mobile World to sell 20 pct stake in grocery chain

By Dat Nguyen   April 1, 2022 | 08:00 pm PT
Mobile World to sell 20 pct stake in grocery chain
A Bach Hoa Xanh outlet is seen in HCMC's Thu Duc City. Photo by VnExpress/Tat Dat
Mobile World plans to sell a 20 percent stake in its grocery chain Bach Hoa Xanh in this or next year to expand its operation nationwide.

The electronics reseller, which owns a 99.95 percent stake in it, eyes to find investors who pay the highest price, it stated in a letter to shareholders to seek their permission.

The money it gains from the sale will be used to develop online sales and expand Bach Hoa Xanh’s presence across the country. Its 2,147 outlets are currently mostly located in southern Vietnam.

Mobile World has invested around VND12.83 trillion ($561.73 million) into Bach Hoa Xanh as of last year.

The company announced Thursday that CEO Tran Kinh Doanh would resign for personal reasons. He will also no longer serve as board member.

Doanh will be replaced by Tran Huy Thanh Tung, a founding shareholder and fellow member of the board.

He has held several positions in the company including head accountant and chief financial officer.

Tung holds a 0.75 percent stake in Mobile World, or 5.3 million shares.

The company targets a revenue of VND140 trillion this year, up 14 percent from last year, and a profit of VND6.35 trillion, up 30 percent.

Bach Hoa Xanh is expected to contribute 20-25 percent of the revenue.

The grocery chain will not open new outlets this year to focus on strengthening its operation to prepare for a major expansion next year.

The chain posted a revenue of VND3.9 trillion in the first two months, roughly the same as the first two months last year.

Mobile World plans to launch its first electronics store in Jakarta in the middle of this year, to be called Era Blue.

The company this year has branched into several new sectors like baby care, fashion, sportswear, jewelry and cycling. These fetched the company VND100 billion in revenue in the first two months.

 
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