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MWG picks up Tran Anh Digital World

Released at: 14:55, 04/01/2018

MWG picks up Tran Anh Digital World

Photo from VIR

Mobile World Investment JSC announces completion of acquisition of Tran Anh Digital World.

by Minh Do

The Mobile World Investment JSC (MWG) has announced the completion of its acquisition of Tran Anh Digital World, becoming the dominant shareholder with a stake exceeding 90 per cent.

All processes have been basically completed and the operations of Tran Anh outlets have been carried out by the MWG team since October.

MWG bought shares from nine previous shareholders in Tran Anh, including the largest shareholder, the Nojima Corporation, which held 7.7 million shares, or some 30.9 per cent of capital, Mr. Tran Xuan Kien, Chairman of the Board at Tran Anh, who held 5.6 million shares, or 22.7 per cent, and Ms. Do Thi Thu Huong and six other individual shareholders who held 5.3 million shares, or 21.5 per cent.

In the first nine months of 2017, Tran Anh earned more than VND2.4 trillion ($105.3 million) in revenue and it targets more than VND4 trillion ($175.6 million) in 2018.

At the same time, advantages in scale will help MWG increase the purchasing power of its Dien may Xanh chain and Tran Anh with suppliers.

According to MWG, the combined market share of the two companies will be around 30 per cent.

The Dien may Xanh chain is successful around the country but needs to increase its presence in the north, especially in Hanoi and other cities. Meanwhile, Tran Anh is a large, widely-known retailer with 34 electronics supermarkets in favorable locations and can add more variety in goods. The merger will strengthen both sides.

The Tran Anh brand will be retained in the short term.

MWG is also is in the process of completing the acquisition of the Phuc An Khang pharmaceutical chain. Phuc An Khang was established in May 2006 and has 14 pharmacies in Ho Chi Minh City. MWG plans to expand into pharmaceutical retail, targeting about 50 or 60 pharmacies next year, according to a report from HSC.

Total investment in M&As by MWG in 2017 reached VND2.5 trillion ($110 million).

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