Domestic petroleum business to sell 45.55 per cent to strategic investor

VietNamNet Bridge - As the owner of a hospital, securities company, bank and large properties, Tram Be, the banking tycoon, and his family amassed a huge fortune until the day he was arrested. The police on August 1 issued a decision to prosecute and arrest Tram Be, former vice chair of Sacombank, for ‘deliberately violating State regulations on economic management, causing severe consequences’.  He was accused of helping Pham Cong Danh, VNCB’s former Chairman, steal VND1.8 trillion ($79.2 million) from the Vietnam Construction Bank. Be was famous for his wealth before the arrest. He held 27.6 million Sacombank shares (STB) which had market value of VND352 billion, and 2.65 million Binh Chanh Construction Company’s (BCI) shares, worth VND77.3 billion. Be held the post of deputy chair of the Phuong Nam Gold, Silver and Gemstone Company (NJC) which has charter capital of VND450 billion. He was also a member of the board of directors of private Trieu An General Hospital. As the owner of a hospital, securities company, bank and large properties, Tram Be, the banking tycoon, and his family amassed a huge fortune until the day he was arrested. Be’s sons and daughter are also holding huge assets. The eldest son Tram Trong Ngan now holds 89.18 million Sacombank shares worth VND1.141 trillion. The second son Tram Khai Hoa has Sacombank shares worth VND427 billion. Tram Thuyet Kieu, the daughter, has VND346 billion worth of Sacombank shares. Kieu also holds 5 million NJC shares. However, as the company doesn’t list…... [read more]

FPT Retail is the second largest retailer of mobile handsets in the country with a national network of 438 stores by July. Meantime, Dragon Capital and VinaCapital manage assets of $2.1 billion and $1.8 billion respectively. According to Euromonitor and Retail Asia Publishing, FPT Retail topped the list of effective retailers in Vietnam, with revenue of $15,717 per sq. meter of sales space. . This year, FPT Retail is targeting to achieve revenue growth of 27.5 percent and pretax profit of 40 percent by opening more outlets in areas with low smart phone penetration. In first six months of the year, FPT Retail’s turnover reached VND6,193 billion ($272,505,471), a year-on-year rise of 31 percent and pretax profit is VND141 billion, up 44 percent compared to same period last year. FPT Retail’s annual revenue growth and pretax profit are expected to achieve 25 percent and 35 percent respectively in the period 2016-2019. VinaCapital director Andy Ho said that the Vietnamese people show a huge demand of smart phones because smart phones are considered as the second device to communicate and access internet. Accordingly, the fund managers decided to invest in the unlisted retail company. Dragon Capital’s CEO Vu Huu Dien said that with the population of 100 million people and Vietnam’s $110 billion retail market is one of the most lucrative in the world, and the growth of mobile phones and technology gadgets sales has been tremendous.By KIM THANH - Translated by UYEN PHUONG... [read more]

In the first seven months of this year, along with developing new projects, Nova Real Estate Corporation (Novaland), one of the leading property developers in Vietnam also expanded its operations via mergers and acquisitions (M&A). Novaland has made significant M&A transactions throughout the year to prepare for its 2018 targets Novaland has decided to spend VND1.045 trillion ($45.8 million) acquiring 98.12 per cent of Thanh Nhon Real Estate Investment One Member Co., Ltd. After the purchase, Thanh Nhon Real Estate Investment One Member Co., Ltd will be converted to Thanh Nhon Real Estate Investment Co., Ltd. A few days ago, Novaland sold a 99.88 per cent stake in its subsidiary Nova Galaxy Real Estate JSC to Vietnamese real estate developer Anpha Holdings. The deal’s value was not disclosed. After the purchase, Anpha Holdings will take over Nova Galaxy’s projects, especially its newest project, the apartment and shopping centre complex located in District 4, Ho Chi Minh City. Earlier in April, Novaland completed the purchase of a 99.99 per cent stake in Gia Duc Real Estate Co., Ltd. for VND1.939 trillion ($85.01 million). Novaland said the acquisition is meant to advance its plans to enlarge its land holding, which would help it achieve its targets for the next year. By acquiring Gia Duc, Novaland will also get a stake in the Sunrise Bay project, a 181-hectare complex of urban area, amusement, and commercial centres in…... [read more]

  A production line at Habeco (Source: VNA) Hanoi (VNA) – Seven State-owned enterprises (SOEs) had their equitisation plans approved in July, bringing the number for the first seven months of this year to 26, according to the Corporate Finance Department under the Finance Ministry. The department said the total real value of the 26 enterprises is 71.88 trillion VND (3.16 billion USD), of which over 18.3 trillion VND (808.2 million USD) belongs to the State.  Under the approved equitisation plans, the SOEs will have a combined charter capital of over 22.63 trillion VND (995.72 million USD), of which the State will hold more than 11 trillion VND (495 million USD).  Meanwhile, around 6.5 trillion VND (286 million USD) worth of shares will be sold to strategic investors, 156 billion VND (6.86 million USD) to the enterprises’ workers, 16 billion VND (704,000 USD) to trade unions, and nearly 4.87 trillion VND (214.28 million USD) will be put up for auction.  According to the department, the equitisation process of SOEs has yet to meet expectations. In order to speed up equitisation in the remaining time of the year, the Ministry of Industry and Trade needs to accelerate the sale of State-owned capital at the Hanoi Beer Alcohol and Beverage Joint Stock Corporation (Habeco) and the Saigon Beer-Alcohol-Beverage Joint Stock Corporation (Sabeco) in order to complete by December 1. During the period, SOEs divested almost 3.7 trillion VND (162.5 million USD) of investment from operations outside their core…... [read more]

Vietnam Machinery Erection Corporation (Lilama) will start trading 79.7 million shares on the Unlisted Public Company Market (UPCoM) from August 16 a reference price of VND15,000 (66 cents) per share. — Photo Vietnam Machinery Erection Corporation (Lilama) will start trading 79.7 million shares on the Unlisted Public Company Market (UPCoM) from August 16, two years after its initial public offering in 2015. The shares, to be traded under the code LLM, will have a reference price of VND15,000 (66 US cents) per share on the first trading day, the Ha Noi Stock Exchange announced. Of the 79.7 million shares registered for trading, 20,800 ESOP shares (stocks offered to employees in an employee stock ownership plan) are subject to transfer restrictions. Founded in 1960, Lilama used to be wholly owned by the construction ministry. The corporation was equitised in 2015, with 35.55 million shares being put up for sale, but only around one million shares were sold at VND10,362 per share. Since April 2016, Lilama has been operating as a joint stock company. The construction ministry remains its biggest stakeholder, holding 97.88 per cent of its charter capital of VND887.2 billion as of April 26, 2017. The heavy engineering company and its subsidiaries design, engineer, construct and install industrial plants in Viet Nam. They are also engaged in equipment, technology, tank, steel structure manufacturing, and undertake projects in the areas of thermal power, cement,…... [read more]

Vietnam National Textile and Garment Group (Vinatex) has proposed the prime minister to allow the company to divest all state-owned capital as a measure to resolve difficulties in business. RELATED CONTENTS: PM urges Vinatex reform Textile sector growth surges Vietnam Airlines, Vinatex to go public in January Minister urges Vinatex towards better efficiency in 2017 Proposed to divest near VND2.7 trillion of state capital Six central ministries and departments have just received dispatches from the Government Office for their opinion on Vinatex’s proposal to divest all, nearly VND2.7 trillion ($119 million) state capital. The proposal was included in Vinatex’s document on resolving difficulties for its business addressed to the PM. Le Tien Truong, general director of Vinatex, shared that the company has officially completed its equitisation in January 2015, with the chartered capital of VND5 trillion ($220 million) and state capital ownership ratio of 53.49 per cent, an equivalent of VND2.67 trillion ($117.5 million). However, according to the PM’s Decision No.58/2016/QD-TTg, Vinatex is not on the list of companies where the government plans to retain a controlling shareholding. “To meet the development requirements of this new era, Vinatex needs shareholders with professional management and market development capabilities to support the group in management and sales. Thus, the group proposes that the PM consider allowing the divestment of state capital in Vinatex,” Truong…... [read more]

Vietnam Prosperity Joint Stock Commercial Bank (VPBank) has officially announced its listing on the Ho Chi Minh City Stock Exchange (HoSE) under the ticker VPB. IFC offers $57-million convertible loan to VPBank Analysis: Basel II bank performances FE Credit raises $100 million in financing arranged by Credit Suisse VPB stocks were listed on HoSE on August 8, but will be officially available for trading from August 17 In particular, HoSE published Notice No.856/TB-SGDHCM on the receipt of the first listing registration of VPBank. Accordingly, more than 1.3 million VPB stocks will be listed at the price of VND39,000 ($1.7) per share. In total, VPBank is valued at nearly VND52 trillion ($2.3 billion), overtaking Millitary Bank (MB) as the private commercial bank with the highest capitalisation value on the stock exchange. VPB stocks were listed on HoSE on August 8, but they will be officially traded from August 17.  The consultation unit for VPBank’s listing plan is Viet Capital Securities (VCSC), one of the fastest growing securities companies in Vietnam. As of June 30, 2017, VPBank’s total assets were VND249 trillion ($11 billion), a growth of 9 per cent compared to the end of 2016. Its deposit sharply increased form VND172 trillion ($7.6 billion) at the end of 2016 to VND195 trillion ($8.6 billion) as of June 30, 2017, an equivalent to…... [read more]

The KIDO Group Corporation (KDC) has announced that it will sell 14.8 per cent of its subsidiary KIDO Frozen Food (KDF), or 8.288 million shares, to strategic partners and employees. KDF has charter capital of VND560 billion ($24.6 million), equivalent to 56 million shares, and is 79.8 per cent owned by KDC, with 44.68 million shares. The sales of 14.8 per cent includes 10 per cent to KDC employees at VND25,000 ($1.1) per share and 4.8 per cent to strategic partners at VND40,000 ($1.76). The sale will be conducted within the third quarter of this year. KDC announced it would sell sale 35 per cent of the frozen food subsidiary earlier this year. Deputy Chairman and CEO Tran Le Nguyen told a March conference introducing investment opportunities in KDF that 11.2 million shares, or 20 per cent, would be offered in April at a starting price of VND52,000 ($2.3) per share, and that the remaining 15 per cent would then be offered to partners and employees. The April sale went ahead. The frozen food business brought it substantial profits last year. According to a report from the Ho Chi Minh Securities Corporation (HSC), net revenue in 2016 reached VND1.4 trillion ($61.6 million), up 34.8 per cent against 2015. After-tax profit was VND143 billion ($6.3 million), up 85 per cent and accounting for 63 per cent of KDC’s profit. KDF now owns a frozen food distribution network with over 70,000 points of sale throughout the country. KDC’s net revenue stood at…... [read more]

The vibrant mergers and acquisitions (M&A) market in Vietnam is developing and the 2017-2018 period is forecasted to witness more successful M&A deals, as well as new state divestments, which is a big opportunity for domestic and international investors. Bad debts dampen M&A boom in banking industry Reforms help M&A landscape to shine Serving up an M&A feast Abundant attractive deals make huge contribution to M&A market Danang M&As help overcome delays State divestment from Vinamilk will be imlemented in October 2017 The M&A market in Vietnam reported a record value of $5.8 billion in 2016 and KPMG Vietnam even forecasted that the second half of 2017 will witness more sizable M&A deals. The reason is that the private sector in Vietnam is considering M&A an important strategy to ensure sustainable development and expansion. Also, the Vietnamese government is speeding up state divestment in a number of big firms. Thus, it is likely that more M&A deals will come in the second half of 2017 and early 2018. Below is the list of ten sizable divestment that are forecasted to be implemented during 2017-2018. 1. Vietnam Dairy Products Joint Stock Company (Vinamilk)  The Vietnamese government has approved the plan on selling more than 48.3 million Vinamilk shares, an equivalent of 3.33 per cent of…... [read more]

Famers shows fake fertiliser dissolving in water. — Photo Management over the fertiliser market must be enhanced to tackle fake, low-quality products which cause estimated losses of about US$2.5 billion each year for a country with more than 70 per cent of its population working in the farming sector, experts said at an online conference on Wednesday. Nguyen Hac Thuy, Deputy President of the Viet Nam Fertiliser Association, said at the conference held by the Dien Dan Doanh Nghiep (Business Forum) online newspaper that fake and low-quality fertilisers were commonly found and were harming Viet Nam’s agricultural production. Violations were found to have increased from 4,000 in 2015 to 5,000 cases in 2016 while many cases remained unhandled, Thuy said, adding that stronger deterrents must be used instead of just administrative punishments. Nghiem Quang Tuan from the Department of Plant Protection under the Ministry of Agriculture and Rural Development said that fake fertilisers would decrease productivity of plants, impoverish land and cause unhealthy competition. “Producers and farmers both hope that fake fertilisers will be wiped out soon,” Vu Xuan Hong, deputy director Lam Thao Fertilisers and Chemicals Joint Stock Company said. Hong said that it was urgent to devise standards for fertiliser quality to verify which products were fake or poor quality, adding that many producers sold products without the contents listed on the packaging. Hong also proposed market watch to be enhanced together with strong punishment measures. …... [read more]

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