HANOI/SINGAPORE, Feb 28 (Reuters) – China’s CDH Investments is in advanced talks to buy a minority stake in Bach Hoa Xanh (BHX) from Vietnam retailer Mobile World (MWG.HM), opens new tab in a deal that could value the grocery chain at up to $1.7 billion, two sources with direct knowledge said.
CDH, one of China’s biggest alternative investment firms and also a former Mobile World investor, has emerged as the frontrunner to buy a stake of up to 10% after outbidding rivals, the sources said.
“CDH is looking to buy between 5% to 10% stake,” one of the sources said, adding that deliberations were ongoing and there was no certainty that a deal will be sealed.
The second source said a deal “could be struck as early as next month if negotiations were successful”.
Both sources declined to be named as the matter was private.
CDH and Mobile World, Vietnam’s biggest retail group by market value, declined to comment when contacted by Reuters.
