VinaCapital invests $11m in Vietnamese construction firm Tasco’s private placement

Photo from Tasco JSC website.

Vietnam-based asset manager VinaCapital has invested $11 million for a stake in listed toll road and real estate developer Tasco JSC via a private placement.

Through the Vietnam Opportunity Fund (VOF), VinaCapital participated in the company’s $23-million private placement of 21 per cent post-investment shares and became a major shareholder, it said in a statement.

Tasco’s management team and other investors also joined but VOF acquired the largest portion of the offer.

In an earlier announcement by the invested firm, it had planned to sell 50 million new shares to investors, in which VinaCapital’s investment vehicles would collectively hold 30 million shares, which would account for a 12.5 per cent equity of the company after the private placement.

The offer price is VND10,500 ($0.46) apiece, which VinaCapital said was “an attractive price”. Its shares on the Hanoi Stock Exchange changed hands at VND11,700 on Monday.

Tasco, which operates infrastructure construction and real estate business, will allocate VND100 billion for a highway development and VND300 billion for a residential project in Hanoi. The remaining part of the proceeds will be used for working capital requirements.

“This investment is consistent with our philosophy of investing in companies that are focused on the growth of the local economy, and infrastructure improvement is a critical element in Vietnam’s ongoing development,” commented Andy Ho, CIO of VinaCapital and managing director of VOF.

Tasco is a former state-owned company and was listed in 2008. The firm currently has four toll-road projects in operation, and expects to bring another one into operation in 2017. By the number of projects owned (which total $220 million), Tasco is one of the largest BOT and BT developers in northern Vietnam, according to VinaCapital.

Tasco’s revenue reached $124 million and net profit was $18 million in 2016. Its market capitalisation stands at $124 million.

VinaCapital expects the company will recognise year-on-year growth rates of 32 per cent in revenue and 15 per cent in net profit during 2017.

Also read:

VinaCapital infra vehicle completes divestment of SEATH assets, to wind up fund

VinaCapital leads $30m funding round in Vietnamese decor firm An Cuong

VinaCapital mulls 20 strategic exits from cos in Vietnam Opportunity Fund

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.