9 foreign funds buy into Vietnam's top mobile retailer

Thanh Nien News

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A The Gioi Di Dong store in Ho Chi Minh City. Photo: Diep Duc Minh/Thanh Nien A The Gioi Di Dong store in Ho Chi Minh City. Photo: Diep Duc Minh/Thanh Nien

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Nine foreign funds have acquired more than 4.4 million shares, or a combined stake of around 3 percent, in one of Vietnam's biggest mobile retailers -- The Gioi Di Dong (Mobile World Group).
The funds, including the US's Chambers Street Global Fund and Thailand's Thanachart Securities Pcl, bought the shares from British Virgins Islands-incorporated CDH Electric Bee Limited, Vietnam Securities Depository reported on Friday.
The deal was reportedly worth around VND334 billion (US$14.8 million) in total.
Electric Bee, which bought nearly 20 percent of the company in 2013, now owns a stake of 5.27 percent, following several sales over the years.
Reports by market research firms and The Gioi Di Dong suggested the company now controls around 30 percent of Vietnam's mobile retail market with 646 stores around the country.
The retailer, which also runs a chain of 91 home electronics stores and online sale services, reported revenues of more than VND9.6 trillion ($425.6 million) in the first quarter, an increase of 75 percent from the same period last year.
Its online sales doubled to VND680 billion ($30.14 million) in the first three months, or around 7 percent of the total revenues, according to the company's new data.
In a January report, London-based market research company Euromonitor named The Gioi Di Dong as Vietnam's biggest online retailer with a market share of 10 percent, local media reported. It was followed by Germany's Rocket Internet with popular e-commerce businesses Lazada and Zalora, and tech giant FPT.

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