Inside MWG’s Bach Hoa Xanh store
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Reuters reported that if a deal is reached, the valuation of Bach Hoa Xanh chain could reach $1.7 billion.
It is known that CDH is one of the largest alternative investment firms in China and also a familiar partner of MWG as it had previously owned a stake here. A source, who declined to be identified, reported to Reuters that CDH is considered as the leading candidate in acquiring up to 10% of the stake in Bach Hoa Xanh after surpassing many other competitors.
“CDH is targeting a 5 – 10% stake” – quotes a source from Reuters. However, the source notes that the story is still under negotiation and there is no guarantee that the deal will actually happen. Another source reveals that the deal “could be completed as early as next month if negotiations go smoothly.”
Both CDH and MWG declined to comment when contacted by Reuters.
According to Reuters, MWG had announced its intention to divest a minority stake in Bach Hoa Xanh in 2022 but later postponed it due to unfavorable market conditions. In 2023, this plan was revitalized and attracted the interest of investors such as Singapore’s sovereign wealth fund GIC and other businesses from Thailand.
CDH, founded by Chairman Wu Shangzhi in 2002, is one of the first private equity funds in China. In its early years, the company was known for its investment deals in traditional sectors such as consumer goods and manufacturing.
Mr. Wu Shangzhi
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Currently, CDH manages assets worth over $27 billion and is a major shareholder of WH Group – one of the world’s largest pork suppliers, and Media Group – a renowned household appliance manufacturer. CDH had previously invested in MWG but divested nearly 10 years ago to earn profits, according to Reuters. However, MWG’s 2023 management report shows that Thomas Lanyi – Managing Director of CDH Investments – is currently a non-executive member of the Board of Directors at MWG.
