MINISO Group (MNSO) Announces Acquisition of Remaining Stake in a Joint Venture for its Headquarters Building Project
- Wall St ends up with Goldman; Dow posts biggest weekly rise since June
- Goldman Sachs (GS) Smashes Analyst 3Q Views on Robust M&A and Underwriting Activity
- Tesla (TSLA) Stock: Jefferies Raises Price Target on Higher Capacity Ramp and Sustained Demand, Berlin Giga Will Set New Design and Assembly Standards Says Analyst
- Food, fuels lift U.S. import prices in September
- SEC to Allow First Ever Bitcoin (BTC) ETF - Report
Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.
MINISO Group Holding Limited (NYSE: MNSO) ("MINISO Group", "MINISO" or the "Company" ), a fast-growing global value retailer offering a variety of design-led lifestyle products, today announced that it has entered into a definitive agreement with YGF MC Limited ("YGF MC"), a company jointly controlled by the Company's controlling shareholders, Mr. Guofu Ye and Ms. Yunyun Yang, to acquire the remaining 80% equity stake in YGF Investment V Limited ("YGF Investment"), a joint venture between YGF MC and the Company to establish MINISO's new headquarters building. After closing of the proposed purchase, the Company will hold 100% equity interests in YGF Investment and will start to consolidate the financial results of YGF Investment into the Company's financial statements. The transaction has been approved by the audit committee and the board of directors of the Company.
The total consideration of this transaction is estimated to be approximately RMB700.4 million, representing the lower of the actual investment amount by YGF MC as of August 31, 2021 and the appraisal value of the equity interests confirmed by a third-party valuation firm, deducted by the estimated accumulative loss of YGF Investment that YGF MC should bear up to the closing of this transaction. Closing of the transaction is subject to customary closing conditions and is estimated to take place in the second quarter of the Company's 2022 fiscal year.
In January 2021, YGF Investment's PRC subsidiary acquired land use right of a parcel of land in Guangzhou for approximately RMB1,780 million, which shall be paid by two equal installments. As of the date of this press release, the first installment has been paid. This parcel of land is located in the Pazhou Internet Innovation Zone, which is at the center of Guangzhou's future CBD area where many large new-economy companies in China have chosen to place their headquarters or regional headquarters.
The total investment for the headquarters building project, including the consideration for acquisition of land use right, is estimated to be approximately RMB2,885 million. The Company currently intends to support the subsequent capital expenditures of the project with its cash surplus, future cash flows from operating activities and potential bank financing.
This new headquarters building, with about 104 thousand square meters in gross floor area, is estimated to be completed by 2025. This investment positions the Company well for its future developments in terms of securing office space to accommodate future business expansion, saving long-term operating expenses and providing benefits in potential property appreciation.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- IPO for SPAC Sanaby Health Acquisition Corp. I (SANB) Opens at $10.06
- Moderna (MRNA) Stock Edges Higher as FDA Recommends Booster Shot for At-Risk Adults, Piper Sandler Upgrades to Overweight
- IPO for SPAC Achari Ventures Holdings Corp. I (AVHI) Opens at $10.05
Create E-mail Alert Related CategoriesCorporate News
Related EntitiesEarnings, Definitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!