Vietnam to offload 21.8% of construction major Vinaconex on Dec 8

SCIC and Vinaconex executives introduced investment opportunities in the construction firm. Photo: Ngoc Nguyen

The State Capital Investment Corporation (SCIC), Vietnam’s sovereign wealth fund, is seeking to sell a 21.79 per cent stake in the country’s construction major Vinaconex on December 8.

The sale will be implemented through a public auction, similar to the process carried out SCIC used for disposing of Vinamilk shares.

SCIC will hold 36 per cent of Vinaconex after the transaction, with a full divestment scheduled for completion by 2020.

Details of the divestment including the preference price and bidding process will be announced between November 28 and December 7, the state investor said on Thursday.

Based on the company’s stock price of VND25,600 on Thursday, the disposal is valued at $108.4 million. Vinaconex currently has a market capitalisation of about $500 million.

Saigon Securities Inc has been mandated as the bookrunner for the transaction.

Established in 1988, state-owned Vinaconex, the contractor of major projects, including the new international terminal at Noi Bai Airport, was listed on the Hanoi Stock Exchange in 2008 under the ticker VCG.

The company had successfully raised a combined VND3 trillion though bonds in 2007 and 2010. It said its own capacity would enable another VND3 trillion issuance in case of a need for further fundraising.

Vinaconex is largely owned by domestic investors, with Market Vectors Vietnam ETF as the sole major overseas shareholder, which has a 4.45 per cent stake. Foreign investors are allowed to own a maximum equity of 49 per cent.

SCIC is also planning to offload shares in four other big businesses according to a pipeline it mapped out in 2016. The next divestments include Tien Phong Plastics (in which SCIC holds 37.1 per cent), Binh Minh Plastics (29.51 per cent), medical equipment distributor Domesco (34.71 per cent) and FPT Corporation (5.96 per cent).

The state investor has completed two tranches of sales of Vinamilk shares since December 2016. Fraser&Neave acquired 5.4 per cent of the Vietnamese company for approximately $500 million last year, and Singapore’s Jardine Cycle & Carriage has recently purchased a total of 5.53 per cent shares for $616.6 million.

As at the end of September 2017, SCIC held shares in 133 businesses with a total investment value of $5.4 billion.

The consumer and industrial and construction sectors represent the biggest portions of its portfolio at 33 per cent and 32 per cent respectively.

Also Read:

Singapore’s Jardine Cycle & Carriage acquires 5.53% in Vinamilk for $616.6m

Vietnam govt targets to complete Sabeco stake sale in December

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.

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Following vacancies can be applied for (only in Singapore).   

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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.