VN Dealbook: Vingroup, FCM, Bibica

Visual from Fecon Mining's website

The Vietnamese investment community has seen a number of important announcement from companies, over the past week. While Vingroup intends to invest across multiple sectors, Fecon Mining plans to increase charter capital by selling shares to foreign investors. Food and beverage company Bibica, which is in a complicated relationship with Korean shareholder Lotte and Vietnam shareholder Pan Food, has virtually agreed to let Pan Food acquire it.

Vingroup announces new investment activities

 

Vietnam’s realty giant Vingroup has announced a series of investment projects for this year. These include establishing of six subsidiaries in the sectors of agriculture, education and construction, logistics and building of a five-star hotel in the central Thua Thien – Hue province.

Particularly, the company will contributed VND1.4 trillion ($65.1 million) to hold a 70 per cent stake in VinEco Agriculture Investment and Development Co Ltd, and VND28.2 billion (94 per cent) in VinAcademy Education and Training Co Ltd. In the construction industry, Vingroup is planning to set up four companies, each with a charter capital of VND10 billion.

In addition, the Hanoi-based property developer will receive 94 per cent holding in Sieu Toc Logistics JSC to gain a foothold in this industry.

On Sunday, the $676.5 million company (in charter capital) inaugurated its five-star Vinpearl Hue hotel and trade centre combination project, which has an initial investment capital of VND700 billion ($32.56 million). Located at the intersection of six typical streets of Hue city, the complex is scheduled to be completed within a year.

Vingroup is Vietnam’s fourth largest firm by stock market capitalisation, which stands at $3.3 billion, accounting for 6.9 per cent of the Ho Chi Minh Stock Exchange’s total value.

Also read: Vietnam’s realty major Vingroup spends $468m for M&A deals, diversification

Fecon Mining sells 20 million shares to foreign partners, raises capital

 

Fecon Mining JSC has decided to increase its charter capital by nearly 50 per cent to VND610 billion ($28.4 million) through selling 20 million shares to foreign strategic partners. This amounts to an equivalent to 48.8 per cent of the company’s capital, as of December 31 last year.

The aim of finding foreign partners and increasing capital, the company said, is to apply overseas technology and expertise in its mining operation.

Meanwhile, its existing shareholders will not be receiving dividends for the fiscal year of 2014, and dividend payout this year will be conducted at only 5 per cent.  The money needs to be retained to invest in upcoming projects, explained the company.

In 2014, the company gained control in centrifugal concrete pile manufacturer Fecon Nghi Son and Hai Dang Mineral. Fecon Mining’s profit after tax is expected to jump 49 per cent this year, to reach VND40 billion ($1.86 million).

Pan Food take another step to acquire controlling stake in Bibica

 

The board of directors of Vietnamese confectionery firm Bibica have said they do not reject Pan Food’s offer to purchase 4.6 million of its shares.

Particularly, three of the five board members have no objections to the deal, while the other two gave empty votes.

Previously, Pan Food, a subsidiary of Pan Pacific Corporation – a agriculture and consumer goods investment focused company, filed a public offer to buy another 29.87 per cent of Bibica to increase its holding to a controlling stake of 51 per cent. The anticipated price is VND56,800 per share ($2.64).

Also read: VN’s Pan Food, Korea’s Lotte vie for controlling stake in Bibica

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.