Shares of Miniso slump on plans to buy stake in Yonghui Superstores (updated)

MINISO Holding

24/09/2024 03:24

(Add stock prices, milestones in paragraphs 1-2, 3-5)
       HONG KONG, Sept 24 (Reuters) - Shares of Miniso Group
Holding  9896.HK  plunged as much as 39.2% to HK$20 ($2.57) on
Tuesday after the company said it would take a stake in
embattled Chinese supermarket operator Yonghui Superstores
 601933.SS .
        The lifestyle products retailer's shares dived to the
lowest since December 2022, on track for the biggest one-day
percentage drop since its debut in July 2022, and was the top
percentage loser on the Hong Kong bourse. That compared to a
2.1% rise in the benchmark Hang Seng Index  .HSI . 
  
         Miniso said it would take up a 29.4% stake in Yonghui
for 6.3 billion yuan ($893.05 million) and will buy the shares
from units of Singapore-listed DFI Retail Group  DFIR.SI  and
Chinese e-commerce giant JD.com  9618.HK  at 2.35 yuan ($0.33)
apiece, or a 3.1% premium to Yonghui's closing price on Sept.
20.
        Shares of Yonghui listed in Shanghai jumped 10.2% to
2.48 yuan, the highest since Aug. 12.
  
        Yonghui has logged three years of net losses, reflecting
mounting the costs of  closing stores.
  

($1 = 7.7891 Hong Kong dollars)

($1 = 7.0569 Chinese yuan renminbi)

 (Reporting by Hong Kong newsroom; Editing by Jacqueline Wong
and Christian Schmollinger)
 ((donny.kwok@thomsonreuters.com; +852 3462 7745;))