Benzinga | Sep 27, 2021 05:50AM EDT

MINISO Acquires Remaining 80% Stake In YGF Investment JV For ~$108M

* Chinese low-cost retailer MINISO Group Holding Ltd (NYSE:MNSO) has agreed to acquire the remaining 80% equity stake in YGF Investment V Limited. The total consideration of this transaction is estimated to be RMB700.4 million ($108.4 million).

* YGF Investment is a joint venture between MINISO and YGF MC Limited formed to establish MINISO's new headquarters building.

* After the acquisition, MINISO will hold 100% equity interests in YGF Investment and start to consolidate the financial results of YGF Investment into its financial statements.

* The deal is expected to close in Q2 2022.

* The total investment for the headquarters building project is estimated to be approximately RMB2.885 billion and will be completed in 2025.

* The company held $1.06 billion in cash and equivalents as of June 30, 2021.

* Price Action: MNSO shares closed lower by 3.38% at $13.42 on Friday.