Vietnam Dealbook: Sasco, Maritime Bank, Duc Long Gia Lai

Visual from Duc Long Gia Lai website

Vietnam’s corporate sector saw developments in the ownership structure of both the government-owned and the private firms. While the Southern Airport Services Company could not bring its shares on the stock market due to a tight shareholder structure, Maritime Bank unveiled a share swap plan to take over Mekong Development Bank.

Duc Long Gia Lai, a private-owned company from the central highlands of Vietnam, sold its stakes in two smaller firms to its partner, Bamboo Capital Group.

Shareholder structure prevents Sasco from listing

 

The Southern Airport Services Company (Sasco) has been denied the facility of trading 131.5 million shares on the unlisted public company market (UPCoM), due to the densely structured ownership.

Having a charter capital of VND1.315 trillion ($61.16 million), 96.7 per cent of the company’s capital is owned by five organisational investors. The Airports Corporation of Vietnam is its largest shareholder by 51 per cent.

Meanwhile, Hoan Loc Viet Trade and Service JSC and Imex Pan Pacific (IPP Group) holds 22.1 per cent and 16 per cent, respectively. The other two, Duy Anh Fashion and Comestic and Au Chau Fashion and Comestic, own a combined stake of 7.6 per cent, and are affiliate companies of the IPP Group.

IPP Group and related companies became Sasco’s strategic partners, after the southern airport service firm conducted its IPO  in September last year.

In 2014, Sasco, as a parent company, reached a revenue of VND2 trillion ($93 million), most of which came from sales from duty-free shopping and the Sasco Tan Son Nhat trade centre.

The company’s profit after tax was VND112 billion ($5.2 million), rising 21 per cent year-on-year.

Sasco and Ca Mau Fertiliser are the first companies to submit for trading stocks after equitisation.

Also read: SASCO will list shares in 2015

Vietnam’s $1.8b airport operator ACV plans IPO

Banks swap shares for merger

 

The merger of Maritime Bank and Mekong Development Bank has become official, as the two commercial banks revealed their agreement on the takeover.

Accordingly, Maritime Bank will issue an additional amount of 375 million shares to swap for shares of the target bank at one to one (1:1) ratio.

Post merger, the joint entity will be known as Maritime Bank, and it will have a much larger charter capital of VND11.75 trillion, up from the current capital of VND8 trillion.

Also read: Merger between Maritime Bank and MDB approved

Vietnam consolidates banks to form regional lenders

Duc Long Gia Lai sells two companies to Bamboo Capital

 

Private-owned group Duc Long Gia Lai (DLGL) has fully divested from two companies, selling its stake to the Ho Chi Minh City-based consulting and investment firm Bamboo Capital Group.

Particularly, the listed company gave up a 91.71 per cent stake in Duc Long Gia Lai Wood Processing JSC at VND13,000 per share, while transferring 19.5 per cent in Tay Nguyen Mineral and Metallurgy JSC at the same price to the fund.

The total proceeds reached VND101.88 billion ($4.7 million).

Duc Long Gia Lai has a charter capital of nearly VND1.5 trillion ($69.77 million), earning a profit after tax of VND52.8 billion ($2.46 million) last year, and increase of  up to 25 times, compared to the profit in the year 2013.

It is best known for wooden furniture manufacturing, and is also active in sectors like real estate, agriculture, energy and infrastructure investment.

Meanwhile, Bamboo Capital has been the consulting agency for investment deals of the US-based fund Global Emerging Markets (GEM) in Duc Long Gia Lai and its peer Hoang Anh Gia Lai last year. The Vietnamese financial service company is also planning to list its shares on the Ho Chi Minh City Stock Exchange.

Also read: GEM invests $80m in Hoang Anh Gia Lai Group

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.