Vietnam Dealbook: Dempsey Hill disposes of MWG shares, Vinasugar II to auction 93% stake

Vietnamese national flags and billboards advertising the 12th National Congress of the Communist Party of Vietnam line a highway in Hanoi, Vietnam. Photographer: Maika Elan/Bloomberg

Stake disposals appear to be de rigueur in Vietnam currently. Dempsey Hill Asia Fund has transferred a million shares in Mobile World Investment Corporation (MWG) to four foreign funds while the government has decided to divest its 93 per cent stake in Vietnam Sugarcane and Sugar Corporation II (Vinasugar II).

Dempsey Hill Asia Fund disposes of MWG shares

Dempsey Hill Asia Fund has completed the transfer of one million shares of Vietnam’s leading mobile phone retailer Mobile World Investment Corporation (MWG) to four foreign funds with an estimated value of VND130 billion ($5.72 million).

According to Vietnam Securities Depository Centre, it completed the transfer of ownership of 500,000 MWG shares to three other foreign funds including Morgan Stanley Institutional Fund Inc – Frontier Emerging Markets Portfolio (234,240 shares), Morgan Stanley Galaxy Fund (235,470 shares) and Morgan Stanley Investment Fund (30,290 shares).

Another 500,000 MWG shares were earlier transferred from Dempsey Hill Asia Fund to Vietnam Holdings Limited on January 11. The transfer value is estimated to be VND66 billion ($2.9 million).

Early this month, Mekong Enterprise Fund II also registered to divest its entire MWG holding of 5 million shares. That transaction takes place between January 9 and February 7.

MWG expects 2018 total revenue and after-tax profit of VND86.4 trillion ($3.8 billion) and over VND2.6 trillion ($114.5 million), respectively.

Vinasugar II to auction 63.59 million shares

Vietnam’s Ministry of Agriculture and Rural Development will divest a 93 per cent stake in Vietnam Sugarcane and Sugar Corporation II (Vinasugar II).

Under the plan, Vinasugar II will auction 63.59 million shares to the public on February 13, according to the HCM Stock Exchange (HoSE). Currently, the company has a charter capital of VND685 billion ($30.14 million).

With a starting price of VND10,420 per share, it is estimated that the state will collect about VND664 billion ($29.2 million) through the auction.

In 2016, Vinasugar II’s revenue stood at VND448.7 billion ($19.7 million), while after-tax profit was VND29.9 billion ($1.3 million).

The company expects to have garnered VND462 billion ($20.3 million) in revenues and nearly VND16.5 billion ($7.26 million) in after-tax profits in 2017.

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