Vietnam dealbook: Licogi, Sao Mai, Nha Trang Port, Vinacomin Power

The visual of the crew from Vinalines website

The equitisation process of Vietnamese state-owned companies continues. There are new development at the infrastructure corporation Licogi and at Vinalines’ Nha Trang Port and the electricity arm of the mining conglomerate Vietnam National Coal – Mineral Industries Holding Corporation Ltd (Vinacomin). In addition, a listed firm has decided to divest from several affiliates.

Licogi finds strategic partner

 

Vietnam’s infrastructure corporation Licogi has unveiled its strategic parter, Khu Dong Real Estate Investment Co Ltd, who will buy a 35 per cent stake of the state-owned construction firm at its initial public offer (IPO) next month.

Publishing the equitisation plan on its website, Licogi said Khu Dong has committed to purchase the entire intended share offer for strategic partners, or 31.5 million units.

The starting price for the IPO is VND10,000 ($0.47).

Khu Dong, the Ho Chi Minh City-based real estate company, was established in 2009 and is currently the owner of the Villa Park project, located at the conjunction of highways, hi-tech park and main road to the Long Thanh International Airport, which is intended to be completed by 2020. The project, consisting of 234 villas with a complex of fully equipped facilities, targets premium customers.

Khu Dong has a registered capital of VND800 billion ($37.4 million).

In addition, Licogi also revealed its corporate value to be at VND2.73 trillion ($127.7 million), in which the state capital accounts for VND737.4 billion.

Also read: Licogi IPO plan approved, realty assets attract investors

Sao Mai to exit five cos, increase investment in IDI

 

Property developer Sao Mai Group is planning to exit five companies, which operate in the sectors like, hospitality, seafood, real estate, financial and communications industries. The total divestment will be worth VND112 billion ($5.2 million).

Divesting from these firms, the VND1 trillion company will use the money to increase its holding in food processor International Development and Investment (IDI) from the current 24.65 per cent to 51 per cent. IDI is a young business in the catfish sector, which helped it gain a profit after tax of VND142 billion ($6.64 million) last year. The figure is estimated to reach VND200 billion this year. Sao Mai Group says that increasing investment in IDI makes sense at this time, as the potential of the Vietnamese catfish industry remains high.

The group also plans to issue an additional amount of 222.6 million shares this year, twice as many as its outstanding shares on the market. The proceeds, VND2.226 trillion, will be contributed to realty projects (VND1.1 trillion), subsidiaries and affiliate companies (VND700 billion) and added to working capital.

It hopes to achieve a gross profit of VND120 billion, while dividends for shareholders are expected to be paid at 10 per cent.

Vinpearl Nha Trang allowed to buy large stake in Nha Trang Port

 

The Vietnamese Prime Minister has allowed the Vietnam National Shipping Lines (Vinalines) to sell 8.5 million shares of Nha Trang Port, equivalent to 34.7 per cent of the southern port operator, to Vinpearl Nha Trang – a member unit of realty major Vingroup.

The move is to rectify the ports faliure at the public auction, in May last year, where it could sell only 6.3 per cent during initial public offer.

The remaining shares (15.07 million) of Nha Trang Port belong to the state, but the Prime Minister has directed to reduce the state holding to a non-controlling rate. These shares will be managed by the Khanh Hoa provincial people’s committee instead of Vinalines.

Nha Trang Port’s charter capital is VND245.4 billion ($11.47 million).

Also read:

Vinalines to raise $93.5m via ports divestment

Vietnam realty major Vingroup eyes stake in Saigon & Hai Phong Ports

Vinacomin Power potentially the most valuable state-own enterprise IPO

 

Vinacomin Powerthe electricity corporation of Vinacomin, will see nearly 236.4 million shares auctioned on April 16 during its IPO, the Hanoi Stock Exchange has announced. The shares translate to a 34.76 per cent stake in the corporation.

With the starting price of VND10,000, the company can raise some VND2.364 trillion ($11 million). This is the highest value of an IPO since 2014, if it is successful.

Under the equitisation scheme, Vinacomin Power will have a charter capital of VND6.8 trillion, 65 per cent owned by the state. Vinacomin Power is running five coal-fired power plants with the total capacity of 1,460 MW.

Other two corporations under the management of Vinacomin to be equitised this year are Vinacomin – Minerals Holding Corporation (Vimico) and Viet Bac Mining Industry Corporation (VVMI). Vimico will offer 23.3 per cent, or 46.68 million shares, to increase its charter capital to VND2 trillion. Meanwhile, VVMI will sell 22.6 million shares (21.5 per cent), expecting to raise the charter capital to VND1.05 trillion

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.