Vietnam Dealbook: Ha Do’s bond issue, CotecCons acquires subsidiary

Visual from Ha Do Group's website

New developments in the state-owned and private Vietnamese companies include bond issue from the Ha Do Group and a subsidiary acquisition by CotecCons.

Ha Do publishes bonds to support M&A plans

Property developer Ha Do Group plans to issue corporate bonds of VND1 trillion ($46.5 million) to fund acquisition of realty projects. The company said that it is keen to purchase shares of the forthcoming equitised state-owned enterprises, targeting their real estate assets.

The Hanoi-based firm is also seeking a foreign partner to jointly develop the Ha Do 756 Saigon building located in Ho Chi Minh City, which was initially meant to comprise of offices for lease. However, the group has decided to transform the building into a complex of apartments and shopping mall, in order to increase the liquidity of the project.

Meanwhile, the group is planning to upgrade the Nhan Hac Hydropower plant, in which it has a 40 per cent stake, to increase its efficiency.

In the first quarter of this year, the company’s  revenue and profit were estimated to be VND120 billion ($5.6 million) and VND5 billion ($232,560), respectively. Both figures for the entire year are expected to rise eight per cent over 2014 to VND1.7 trillion ($79 million) and VND230 billion ($10.7 million).

Ha Do Group has a charter capital of over VND651.5 billion ($30.3 million). Formerly a state-owned company under the management of the Vietnam Ministry of National Defense, it was equitised in 2004 and has since diversified operation into consulting and financial investment through 12 subsidiaries and affiliates.

CotecCons fully acquires subsidiary Unicons

Construction company CotecCons will acquire 100 per cent of its subsidiary Uy Nam Investment Construction JSC (Unicons) through share swap.

Accordingly, the parent company will publish 3.6 million additional shares to swap for shares of Unicons at a 1:0.745 ratio, which means a CotecCons (which holds a 50 per cent stake in Unicons) share will be exchanged for 0.745 Unicons share.

In addition, CotecCons is planning to issue ESOP shares in two phases. The first one will see 1.05 million units, equivalent to a 2.5 per cent stake, published at the price of VND35,000 ($1.63). The second phase will be executed if the company’s revenue growth reaches 40 per cent. Another 2.5 per cent of the total outstanding shares will be issued at VND45,000 ($2.1).

The shareholder structure of CotecCons has changed after Indochina Holdings Group divested three million shares, while Thailand investor The Ton Poh Fund purchased 2.5 million shares a fortnight ago.

CotecCons also plans to conduct dividend payout, by cash, at 50 per cent for the 2014 fiscal year. In 2015, the company hopes to generate VND9.2 trillion ($427.9 million) in revenue and VND400 billion ($18.6 million) in profit after tax, a 22.17 per cent increase over 2014.

Also read: Ton Poh Thailand Fund picks 6% stake in Vietnam’s CotecCons

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.

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.