Taiwan’s Synnex Technology to acquire 47% stake in Vietnam’s FPT Trading

Taiwan’s Synnex Technology International Corporation has entered an agreement to acquire a 47 per cent stake in FPT Trading, valuing the Vietnamese company at more than $80 million.

Hanoi-headquartered tech major FPT Corporation will receive VND932 billion ($41 million), including the proceeds from the sale as well as FPT Trading’s retained earnings, the company said in its announcement.

Synnex, with $33 billion revenue sales, is the world’s third largest distributor of IT and electronics products, FPT said.

“This is the best way for Synnex to deepen our presence in such an attractive market like Vietnam,” said Evans Tu, CEO of Synnex, in a statement.

In conjunction with the deal, FPT Trading has also decided to sell 5 per cent ESOP shares by the end of this year.

FPT Trading claims itself as Vietnam’s largest distributor of telecommunications and IT products with over 2,700 stores across the countries.

Rumours arose since June 2017 that FPT was negotiating to sell its distribution unit to Synnex, but the group did not comment on market speculation.

The listed tech conglomerate started its talks to divest its distribution and retail businesses two years ago.

Last month, it sold a 30 per cent stake of FPT Digital Retail to Vietnam’s asset managers VinaCapital and Dragon Capital, in which VinaCapital said it invested $11 million. That was the major portion of a 35 per cent share that FPT Digital Retail offered to institutional investors.

Meanwhile, FPT continues looking at reducing its holding in the retailer to below 50 per cent, as per local media reports.

In addition, the tech company will also consolidate its control over the telecommunication unit, FPT Telecom, from the current 45.55 per cent to over 51 per cent, once the state divests from this business.

The State Capital Investment Corporation is still holding 50.16 per cent of FPT Telecom and will not divest from this unit until 2020.

FPT share rallied 1 per cent to VND48,600 apiece following the deal announcement.

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Vietnam: Dragon Capital, VinaCapital pick 30% of FPT Retail