Vietnam’s VI Group to divest over 10% stake in logistics major Gemadept

Visual taken from Gemadept's website (May 2017)

Vietnam Investment Group (VI Group) has registered to sell over 10 per cent stake, equivalent to 32 million shares, in one of Vietnam’s largest logistics firms Gemadept Corporation.

The transaction is proposed to be carried out through VI Group’s two vehicles.

According to a filing to State Securities Committee, the first vehicle, VI Fund I, has registered to sell 2.45 million shares (or 0.83 per cent stake) of Gemandept while the VI Fund II will sell 29.69 million shares (10 per cent stake). The proposed sale would reduce its ownership in Gemadept from 29.55 per cent to 19.55 per cent.

Meanwhile, SSJ Consulting (Vietnam) Co., Ltd, related to Gemadept board member Tsuyoshi Kato, has registered to buy 29.69 million shares of the company.

Based in Ho Chi Minh City, SSJ Consulting is a newly-established company with three major stakeholders including Sumitomo (51 per cent) Japan Overseas Infrastructure Investment (46 per cent) and Suzuyo Co Ltd (3 per cent).

DEALSTREETASIA had earlier reported that after deploying nearly 50 per cent of VI Fund III, a closed-end private equity fund with capitalization of $252 million, VI Group was preparing for an initial public offering of some of its consumer services businesses.

“In the next 18 months, the fund will focus on developing the companies in its portfolio until they are strong enough to be listed,” said David Do, managing director, VI Group. “It will support portfolio companies with the implementation of IT systems, standardizing and scaling operations and bolt-on acquisitions.”

Do is currently a member of the board of Gemadept Corporation.

Founded in 2006, VI Group is one of Vietnam’s major private equity firms, having invested in manufacturing, logistics, hospitality, education, retail, affordable housing, technology, media and entertainment, and finance. It raised its first fund in 2008, and a second in 2012.

VI Group has over $500 million assets under management. It typically targets to hold significant minority stake in portfolio companies for five to seven years.

The firm often takes a majority stake where it has industry expertise. (via existing investments, operating partners or co-investors) and is able to add significant value. Its investment can take the form of pure equity, performance-linked equity or convertible debt.

As of September 2018, the homegrown PE firm has completed 20 private equity investments, of which it has fully exited from seven investments.