Miniso shares fall on plans to buy stake in Yonghui Superstores By Reuters

HONG KONG (Reuters) – Shares in Miniso Group Holding fell as much as 39.2 percent to HK$20 ($2.57) on Tuesday after the company said it would take a stake in the Chinese supermarket operator Yonghui Superstores.

Shares in the lifestyle retailer fell to their lowest level since December 2022, on track for their biggest one-day percentage drop since its debut in July 2022, and were the biggest percentage losers on the Hong Kong exchange . This compared to a 2.1% increase in the benchmark.

Miniso said it would take a 29.4 percent stake in Yonghui for 6.3 billion yuan ($893.05 million) and buy the shares from Singapore-listed units of DFI Retail Group and the Chinese retail giant electronic JD (NASDAQ:).com at 2.35 yuan. ($0.33) apiece, or a 3.1% premium to Yonghui’s closing price on Sept. 20.

Shares of Shanghai-listed Yonghui rose 10.2 percent to 2.48 yuan, the highest since Aug. 12.

Yonghui has posted net losses for three years, reflecting rising store closing costs.

($1 = 7.7891 Hong Kong dollars)

($1 = 7.0569 renminbi)