SK Group-led consortium to invest $1b in Vingroup in April: Report

Vinhomes Times City residential buildings, developed by Vingroup JSC, stand near the entrance to Vincom Mega Mall Times City in Hanoi, Vietnam. Photographer: Brent Lewin/Bloomberg

South Korean conglomerate SK Group will lead a consortium to invest $1 billion in Vietnamese business major Vingroup, according to a report on MK.co.kr.

The investment will be made through SK Southeast Asia Investment, a unit the Korean chaebol set up in August last year.

An email sent to Vingroup went unanswered at the time of publishing this article.

The news report said SK Group would form a consortium with financial investors to initiate the transaction next month, which will see its subsidiary investing $500 million in the Vietnamese major.

The development comes on the heels of an earlier announcement by Vingroup to issue a private placement to raise around $1 billion. The 250 million shares, accounting for a 7.8 per cent stake, will be up for sale to up to five institutional investors at the minimum price of VND100,000 apiece.

Last year, Vingroup, which has been dubbed “the Samsung of Vietnam”, raised $400 million in private placement to Hanwha Asset Management.

From a real estate business, Vingroup has grown into a conglomerate of retail, hospitality and entertainment, logistics, e-commerce, education, healthcare and most recently automobile, technology and smartphone manufacturing.

Vingroup is the parent firm of Vincom Retail and Vinhomes, the two companies that scored the biggest IPOs in the country garnering $740 million and nearly $1 billion, respectively.

In October last year, SK Group also closed a $470 million financing in Masan Group,  which operates in consumer goods, energy and finance, for a 9.5 per cent stake.

Both Vingroup and Masan are among the 10 biggest Vietnamese listed firms by market capitalisation, with Vingroup on top of the list ($16.4 billion).

Also read:

Vietnam 2018: Mega IPOs, mid-market deals attract private equity play

Vingroup acquires 51% of Spanish hardware firm BQ to make smartphones

Warburg Pincus said to have pared stake in Vietnam’s Vincom Retail for $100m

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.