Vietnam’s state-owned Vinapharm plans to divest 35% stake this year

State-owned Vietnam Pharmaceutical Corporation (Vinapharm), one of the leading Vietnamese pharma firms, plans to sell 35 per cent stake this year and another 30 per cent in 2020.

After a protracted wait, the decks may be cleared for Vinapharm’s divestment plans, which are pending the government’s review and will be soon announced to shareholders and investors, per a company filing.

The divestment plan was first reported by Vietnam Investment Review, citing an anonymous source.

The report said that Ministry of Health (MoH), which currently owns 65 per cent stake in the firm, may resume the divestment in the upcoming days after a two-year delay.

Vinapharm, which has 22 member units under its wing, officially started to trade on the Unlisted Public Company Market (UPCoM) in 2017. Local player Viet Phuong Investment  Group owns 17 per cent stake in Vinapharm.

This year,  Vinapharm aims to reach VND 6.3 trillion in total revenue, up 3.6 per cent year-on-year while profit before tax is estimated at VND 218 billion, approximately equal to the profit achieved last year.

The listed firm’s State stake divestment plan is set amidst the country’s $5.2-billion pharma market, which is attracting foreign investors.

Most recently, Vietnam-focused private equity firm Mekong Capital has provided financing to pharmacy chain Pharmacity out of its Mekong Enterprise Fund III.

Established in 2011, Pharmacity has become Vietnam’s largest network with 186 stores in major cities across Vietnam. The company claims to cater to one million customers who have subscribed to its loyalty programme.

The largest electronics retailer MobileWorld, which was backed by Mekong Capital, has also branched into pharmacy retailing by acquiring Ho Chi Minh City-based chain Phuc An Khang.

Meanwhile, Japan’s Taisho Pharmaceutical Holdings has recently completed a transaction to lift its ownership in Vietnam-listed DHG Pharma JSC to over 50 per cent.

 

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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.