- DFI announced that it will divest its entire 21.1% stake in its loss-making Yonghui Superstores to a subsidiary of the Miniso Group for RMB4.5b (US$637m), subject to regulatory approvals.
- - Read this at SGinvestors.io -
DFI to divest Yonghui Superstores
- DFI Retail Group (SGX:D01) announced that it will divest its 21.1% stake in Yonghui Superstores (601933 CH) to the Miniso Group (9896 HK) for RMB4.5b (US$637m). Given that the carrying value of Yonghui was US$765m as at end-1H24, the company will report a non-cash write-down of US$128m for the current financial year.
- - Read this at SGinvestors.io -
Usage of sale proceeds.
- We expect that the sale proceeds will be deployed towards investment in DFI’s growth businesses, ensure dividend growth and pare down debt, all of which are in line with management’s previously stated aims.
- Assuming that the deal closes in 4Q24, we anticipate that DFI could pay a special dividend on top of our forecast final dividend of US$0.06/share (1H24: US$0.035).
Re-positioning its businesses.
- Read more at SGinvestors.io.
