MWG increases capital for its newly established subsidiary to nearly VND 14,000 billion to buy shares of Bach Hoa Xanh

Mobile World Investment (HoSE: MWG) announced the Board of Directors Resolution approving the plan to increase the charter capital of Bach Hoa Xanh Investment and Technology Joint Stock Company by VND 13,890 billion. Implementation time in May. The purpose of raising capital is to buy back all shares of Bach Hoa Xanh Trading Joint Stock Company and serve the business plan.

At the same time, MWG’s Board of Directors also approved the transfer of 100% capital of Bach Hoa Xanh Trading Joint Stock Company (owner of Bach Hoa Xanh food retail chain) to Bach Hoa Xanh Investment and Technology Joint Stock Company. The number of shares transferred is 1.28 billion units, priced at 12,825 billion dong. Implementation time in May and June.

Newly established enterprise Bach Hoa Xanh Investment and Technology Joint Stock Company in May with initial charter capital of 10 billion VND. After MWG invests more, this company’s capital will increase to VND 13,900 billion. The goal of establishing this subsidiary is to buy back shares of Bach Hoa Xanh chain, paving the way for the chain to conduct private placements and IPOs.

According to the plan, Bach Hoa Xanh food chain will privately issue to investors with a maximum rate of 20%, the implementation time is in the period of 2022-2023.

At the 2022 Annual General Meeting of Shareholders, Mr. Nguyen Duc Tai – Chairman of the Board of Directors of MWG said that many investors are interested in the option of private placement of shares of Bach Hoa Xanh chain, so the business will choose a consulting unit. to ensure transparency. At the same time, although the Board of Directors proposed a maximum issuance rate of 20%, priority was given to the plan to sell at a lower rate.

Regarding when to IPO of Bach Hoa Xanh chain, Mr. Tai affirmed only when the revenue scale, market share and profit are stable.

In 2022, Bach Hoa Xanh chain will temporarily suspend new openings to focus on improving administration, increasing customer experience, and service quality to attract users. These changes will be the foundation for the chain’s nationwide expansion from 2023.

In the first quarter of the year, Bach Hoa Xanh chain achieved VND 6,040 billion in revenue, up 2% compared to the first quarter of 2021. The chain had 2,127 stores as of the end of the quarter, opening 360 new stores. 50% of the total stores are currently having positive EBIT with stable sales of about VND 1.2 billion/store/month and an average of 6-7%.

According to Tuong Nhu