Mobile World wants to sell 20% of Bach Hoa Xanh’s capital, in the future, it will develop independently and IPO of subsidiaries
Mobile World Investment Joint Stock Company has just announced the documents of the 2022 Annual General Meeting of Shareholders. At the meeting, Mobile World will present shareholders to approve the results of 2021, such as revenue of 122,958 billion VND 4,901 billion profit, over 5,300 stores, online revenue of VND 14,370 billion.
Mobile World assesses that 2021 will be an unprecedentedly challenging year in the company’s history due to the severe impact of the Covid-19 outbreak.
In 2022, the Mobile World Board of Directors wants to implement 4 important plans.
First, invest in retailing of electronics in Indonesiathrough its subsidiary, The Gioi Di Dong JSC, cooperates with PT Erafone Artha Retailindo (Erafone), a subsidiary of Erajaya Group, to establish a joint venture PT Era Blue Elektronik (Era Blue).
The aim is to develop Era Blue to become the number 1 electronics retailer in Indonesia. Currently, Erajaya is a modern retailer of technology products with the largest network and market share in Indonesia.
According to Mobile World, Indonesia has the potential for large-scale consumption, but the retail market for technology products and electronics is still very fragmented. The modern retail channel for this category accounts for less than 20% of the market share, and electronics alone account for less than 15% of the market share. The electronics retailer has the largest network of just over 60 stores. Mobile World has completed all investment procedures and started to conduct business. The first store is expected to open in mid-2022.
Second, offer up to 20% of Bach Hoa Xanh’s share capital for partners, investors in the region or in the world to offer to buy shares of Bach Hoa Xanh at the highest valuation (except for direct competitors in Vietnam).
The raised capital will be used to invest in distribution centers, fixed assets, technology, strongly develop online sales channels and expand Bach Hoa Xanh chain nationwide. The expected completion time of the transaction is in 2022 or 2023.
It is known that in 2022, Bach Hoa Xanh will temporarily suspend new openings to strengthen its operating platform, prepare for expansion in 2023. In 2022, this chain will focus on attracting and attracting customers and actively improve sales, improve quality and implement many promotions with extremely competitive prices to turn fresh produce into a destination of Bach Hoa Xanh.
Third, make an M&A transaction With retailers in the same industry and other related industries, businesses providing services to support retail activities, including but not limited to transportation services, repair and warranty, warehousing logistics, information technology, software development… when there are potential opportunities in 2022-2023.
Fourth, implementing the policy of sharing added corporate values for the Board of Directors of subsidiaries and key managers has an important role. in the development of subsidiaries for a period of 5 years from 2022. The policy is to create conditions for subsidiaries to develop independently, to raise capital from outside investors through private placement. to finance future business expansion and listing on the stock exchange.
The Gioi Di Dong will issue individual shares in the subsidiary to the Board of Directors and key managers who play an important role. The issuance can only be made when the subsidiaries achieve KPIs in terms of revenue, profit, profitability ratio and implementation in the period 2025-2027.
In 2022, Mobile World sets a target of VND 140,000 billion in revenue and VND 6,350 billion in after-tax profit, up 14% and 30% compared to 2021.
By Business and Marketing
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
