China’s CDH Investments is in advanced negotiations to purchase a minority stake in Bach Hoa Xanh (BHX) from Vietnam retailer Mobile World against about $1.7 billion, Reuters reported on Wednesday, citing two sources familiar with the matter.
CDH, a major alternative investment firm in China and a former investor in Mobile World, is the leading contender to acquire a stake of up to 10 per cent after outbidding other potential buyers, the sources said.
One of the sources indicated that a deal “could be reached as early as next month if negotiations are successful”. Both sources requested anonymity due to the private nature of the matter.
CDH’s potential deal would underscore the increasing interest of global investors in Vietnam’s fast-growing consumer sectors, despite challenges in the country’s property sector due to an anti-corruption campaign.
Mobile World, the parent company of BHX, had initially planned to sell a minority stake in the grocery chain in 2022 but postponed it due to unfavourable market conditions.
CDH, founded in 2002 by Chairman Wu Shangzhi, has shifted its focus from traditional industries to managing over $27 billion in assets. The firm has made significant investments in companies like WH Group and Midea Group.
