VN Dealbook: CII, Vinamotor, SCIC, Dat Xanh

Visual from Dat Xanh's website

Vietnam has seen a spate of deals including, the convertible bond deal between Ho Chi Minh City Infrastructure Investment and Philippines investor Metro Pacific Tollways Corporation, the partnership deal between two Ho Chi Minh City-based realty firms. Also, the State Capital Investment Corporation is planning to divest its stake in the Vietnam Electricity Construction Company, while four companies have shown interest in the Vietnamese government capital in the Vietnam Motors Industry Corporation.

CII collects $48.13 million from bond issuance to Filipino investor

 

Ho Chi Minh City Infrastructure Investment (CII) has completed transferring the first batch of 20 million shares of CII Bridges and Roads (LGC) to 491,000 convertible bonds, issued to its Philippines partner Metro Pacific Tollways Corporation (MPTC), raising VND1.03 trillion ($48.13 million).

In addition, two top executives from MPTC were appointed to the board of directors of LGC – Ramoncito S Fernandez as LGC’s vice chairman, and Roberto V Bontia as deputy general director.

CII said that it will use the proceeds from the share offloading to pay dividends, for the year 2014, to shareholders, at rate of 12 per cent.

After the transaction, CII holding in LGC reduced from 86.74 per cent to 59.13 per cent.

Also read: CII sells part LGC stake to PH’s MPTC for $91m

More companies eye state stake in Vinamotor

 

Two automobile firms, NA Vietnam Motor and Thanh Cong Ninh Binh, have shown interest in buying the entire state capital in the Vietnam Motors Industry Corporation (Vinamotor). This follows the interest expressed in the  same by electric equipment producer Sacom and TMT Automobile JSC.

In a proposal filed to the Ministry of Transport, NA Vietnam Motor CEO Vu Thi Lan said that she “is willing to accompany Vinamotor in restructuring as a strategic partner”. However, the amount or the percentage stake to be acquired, was not mentioned.

The decade old NA Vietnam Motor is not as popular as its other counterparts in the automobile industry, but has a comparatively larger charter capital of VND2 trillion ($93.54 million). Its line of business also includes hospitality, real estate and footwear.

Just a few days after NA Vietnam Motor’s proposal, Thanh Cong Ninh Binh, a subsidiary of the local automobile group Thanh Cong, also gave a formal expression of interest to acquire ministry’s entire stake in Vinamotor .

To purchase the remaining 97 per cent from the government, companies will have to pay some VND1 trillion.

Also read: TMT Automobile plans takeover of Vinamotor

SCIC to divest from VNE

 

The Vietnam State Capital Investment Corporation (SCIC) has again registered to sell 18.9 million shares of Vietnam Electricity Construction (VNE), equivalent to a 29.66 per cent stake. The aim of the divestment was stated as “to restructure investment portfolio”.

The transaction is expected to take place from March 16 to April 14 at market price.

SCIC, in fact, had registered earlier to sell the above mentioned stake but did not succeed although two individual investors were interested.

If SCIC manages to divest this time, its ownership in VNE will be significantly reduced to only 0.76 per cent.

In 2014, VNE achieved a net profit of VND92 billion ($4.3 million), the highest profit within the past 10 years, increasing by five times compared to 2013 and three times of the company’s target. Its stock was traded at around VND13,400.

Dat Xanh invests $11.9m in realty project

 

Dat Xanh Real Estate Service and Construction has decided to partner with Saigon Five Commerce Construction Company, the owner of the Binh Dang apartment project in Ho Chi Minh City, to jointly develop it by contributing capital.

The VND380 billion ($17.8 million) project, which covers a 4,600 square metre area, has 224 apartments. The owner of the project contributed VND155 billion ($7.25 million), while Dat Xanh has invested  the remaining amount. When the project is eligible for sales, Dat Xanh will be entitled to direct management of 90 per cent of the commercial area.

Shareholders of Dat Xanh approved the company’s business plan for 2015 that had outlined a revenue of VND1.6 trillion ($74.8 million) and a profit of VND306 billion ($14.3 million). This reflects an increase of 215 per cent and 82 per cent, respectively, over the 2014 figures. Dividend payout is expected to be implemented at the rate of 20 per cent.

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.