VN Dealbook: HAI, FLC, PTI

This week Vietnam has seen a spate of investment activities involving foreign players. Indonesian food firm AISA is looking to invest in a Vietnamese food firm, while HAI Agrochem has entered an agreement to sell 15 million shares to property developer FLC Group. In another big development, Vietnam based private insurance company PTI has acquired a strategic shareholder- the Korean company Dongbu Insurance Co Ltd. DEALSTREETASIA takes a look:

Indonesian firm to acquire Vietnamese food company

Indonesian food firm PT Tiga Pilar Sejahtera Food Tbk (AISA) plans to invest $80 million into Vietnam and Malaysia to acquire stakes in two food companies this year, the Viet Nam News reported.

AISA’s move will help expand firm’s operations and establish it as regional player in the industry.

AISA finance director Sjambiri Lioe said that they had set a target of acquiring a 90 to 100 per cent stake in a Vietnamese food company and a majority stake in a Malaysian food company. He added that his firm’s negotiation with the Vietnamese partner will be completed soon, and that the negotiations with the Malaysian firm were still at an early stage.

Lioe declined to reveal the names of the two companies, but disclosed that one of them is a biscuit manufacturer. He also said that AISA will sell the products of the company in Indonesia.

Founded in 1990, AISA is based in Jakarta and was originally engaged in the food business (TPS food). In 2008, it entered the business of oil palm plantations (TPS Agro), and at the end of 2010, expanded operations to include rice business, by acquiring a local company.

HAI announces $8.8m private placement to FLC

HAI Agrochem, listed as HAI on the Ho Chi Minh City Stock Exchange, has entered an agreement to sell 15 million shares to property developer FLC Group through a private placement worth $8.8 million, with shares priced at VND12,500 ($0.58) per unit.

The move is part of FLC’s strategy to focus on agriculture sector (apart from the real estate) for further expansion. Earlier this month, the group registered the purchase of two million HAI shares within a month. KLF Investment International, a subsidiary of FLC, currently holds 25 per cent stake in the agri-business firm.

In October last year, FLC partnered with Israel food import-export firm YAOTrade to form the FLC&YAO joint venture to invest in agricultural projects within Vietnam.

PTI sells strategic stake to Korean insurance company

Vietnam’s Post and Telecommunication Insurance Corporation (PTI) has revealed its foreign strategic shareholder as Korean Dongbu Insurance Co Ltd; and is planning to raise its charter capital to VND804 billion ($37.7 million) from the current VND504 billion ($23.7 million).

The Vietnamese insurer also agrees to put a person from Dongbu Insurance in its board of directors.

Previously, the Korean Bizwire had reported that Dongbu would acquire a 37 per cent stake in PTI for $45.8 million to be its biggest shareholder. It said that the deal would be finalised in the first half of this year.

PTI is Vietnam’s fifth largest non-life insurance company by market share and is striving to gain the third position. Its annual revenue growth rate is 25-30 per cent and is expected to hit VND3 trillion ($140.8 million) mark this year. The company’s stock has been successively gaining ground for the past year, ending at VND14,600 ($0.68) on the stock exchange on Tuesday.