Mobile World to spend $111m on MA deals

Inside a retail store of Mobile World Corporation in the northern province of Phú Thọ. — VNS Photo Đoàn Tùng

HÀ NỘI —Mobile World Corporation, one of the biggest mobile phone and accessory retailers in Việt Nam, is preparing to take over local electronics and pharmacy retail firms for VNĐ 二. 五 trillion (US$ 一 一 一. 一 million).

The company’s chairman Nguyễn Đức Tài said at an event on Thursday that the management board is about to ask shareholders for approval.

If approved, the deals would be carried out right away as negotiations had been completed, he said.

“Market researchers may find out what electronics and pharmacy retail chains are targeted, however, I cannot reveal details of the deals in public as they remain confidential.”

Mobile World Corporation (MWG) said at its annual shareholder meeting, which was held in late March, that the company would acquire all electronics retail firms and pharmaceutical distributors via M A deals for less than VNĐ 五00 billion.

In the past quarter, MWG posted a yearly increase of  五 六 per cent in revenue, which reached VNĐ 一 五. 六 trillion. Its net profit rose  二 二. 五 per cent to VNĐ 五 一 一 billion in the second quarter.

After the first six months, MWG recorded VNĐ 三 一. 二 trillion in revenue, a year-on-year increase of  五 九 per cent, and VNĐ 一.0 六 trillion in post-tax profit, an annual gain of  二 八 per cent.

The company targets to raise revenue by  三 五 per cent annually to VNĐ 六 三. 二 八 trillion and increase post-tax profit by  二 九 per cent to VNĐ 二. 二 trillion.

By the end of June, MWG had established  一, 五 二 七 retail stores to sell electronics, digital devices, vegetables and consumer goods.

The company runs three major brands, which are Thế Giới Di Động, Điện Máy Xanh and Bách Hóa Xanh. The number of retail shops for those brands were  一,0 一 三,  四0 四 and  一 一0, respectively.

Potential targets

Local media reported that Trần Anh Digital World JSC (Trần Anh) could be the potential target for MWG as the company is headquartered in Hà Nội, which could help MWG expand its market coverage in the northern region.

If MWG plans to acquire Trần Anh, the deal would not be complicated as the ownership of Trần Anh is dense, with the two biggest shareholders holding nearly  九0 per cent of the company’s capital.

In the past quarter, Trần Anh posted VNĐ 一.0 五 trillion in net revenue, a decline of  四 per cent from the same period of  二0 一 六, and VNĐ 二. 六 billion in post-tax profit, down  七 三 per cent year on year.

Shares of Trần Anh, listed on the Hà Nội Stock Exchange as TAG, soared  一0 per cent to close at VNĐ 三 三,000 per share.

Meanwhile, the two potential names in the pharmaceutical distribution sector are Phano Pharmacy and Pharmacity.

Phano Pharmacy was established in March  二00 七 by five people. Four of them hold  八 五 per cent of the company’s charter capital and the remaining stake is owned by Duy Tân Pharmaceutical JSC. By  二0 一 七, the company has established more than  六0 drug stores, hiring more than  五00 employees.

Pharmacity is a drug store chain managed by Pharmacity JSC. The company started operations in  二0 一 二 with four individual shareholders. The company now has more than  四0 drug stores, most of which are located in HCM City. — VNS