Hanoi Investment General Corporation (SHN) will sell stake in company to Hanoi General Export Import Corporation (Geleximco) as a strategic partner, SHN chairman Dinh Hong Long said at the partnership signing ceremony with Geleximco and An Binh Investment Group (ABFG).
Long said the partnership with Geleximco will help significantly improve SHN performance, but declined to talk about the total stake being sold to the partner.
Along with Geleximco, ABFG also announced that it will be providing consultancy and support to SHN in its comprehensive restructuring scheme, as part of the partnership formation.
SHN described the collaboration as an alliance built on the two partners’ unique strengths in terms of investment, finance and real estate, which will transform SHN’s business model and enhance the management capacity.
“This is an exciting time for us. Through this partnership, we will restructure the entire company, from personnel to sources of capital and business opportunities, and drive new growth,” Long said.
While the partnership provides benefits to the three companies, Long believes SHN will be the largest beneficiary. Geleximco is one of the leading developers in the real estate sector in the north of Vietnam, the segment that SHN aims to develop.
Geleximco is currently a large shareholder of ABFG, an active real estate and financial investor for eight years. It is also known as the strategic partner of the Vietnam National Seaproducts Corporation by acquiring 35 per cent of the seafood processor during its initial public offering last year.
SHN manufactures and sells construction materials, spare parts, and offers transportation services by road and waterway. It reported a loss of VND78.95 billion ($3.65 million) last fiscal, adding to the accumulated loss of VND326 billion at the end of 2014. Finding investors amidst the threat of being delisted is a big success for SHN.
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