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Vietnam M&A Spotlight - May 2024
Freshfields' Vietnam M&A Spotlight keeps you up-to-date with the key business and legal developments in this sector. Please contact us if you would also like to receive our Vietnam Environment Spotlight, Vietnam Infrastructure Spotlight or Vietnam Competition Law Spotlight.
MARKET UPDATES
IPO
- Prized pearls. At the company’s AGM at the end of April, Vingroup announced plans for IPOs of hospitality arm Vinpearl and electric taxi subsidiary GSM. Vingroup chairman Phạm Nhật Vượng confirmed that Vingroup was in the process of listing Vinpearl and aiming for a successful IPO by year-end. Moreover Vượng noted that Vingroup is considering listing GSM on an international market in the near future. Source: Vietnam Investment Review
- Big sale. Masan Group Corporationis reportedly considering listing its consumer unit in what could potentially be the country’s biggest-ever IPO. The conglomerate, based in Ho Chi Minh City, is reportedly working with banks including Jefferies Financial Group Inc., and UBS Group AG on an IPO of Masan Consumer Holdings that could raise $1 – 1.5 billion. The share sale may take place early next year if market conditions are suitable. Source: Bloomberg
Retail
- Upsizing – 1. Masan Group Corporation announced that it has successfully completed a US$250-million equity raise from Bain Capital, a leading private investment firm with approximately US$180 billion of assets under management. Converted at VND25,356 per USD, the almost historically high USD/VND exchange rate, the investment results in a positive net cash impact of VND6.23 trillion for the company. Source: Vietnam Investment Review
Banking
- Upsizing – 2. Vietnamese lender Sacombank reportedly plans to sell a 33 per cent stake by the end of the year, aiming to raise between US$840 million and US$880 million. The bank, listed in Ho Chi Minh City, intends to offer the shares at 34,500-36,000 dong (US$1.36-US$1.40) each, significantly higher than the current trading price of 28,400 dong per share. Source: Deal Street Asia
- Rescue operation. At Military Bank's AGM on 19 April 2024, CEO Pham Nhu Anh revealed that the bank has completed all necessary procedures for the compulsory transfer of a troubled bank, with a target completion date set for this year or 2025, contingent on government approval. The identity of the troubled bank MB intends to acquire was not disclosed. Source: Vietnam Investment Review
Healthcare
- Medicine. Vietnam-based pharmacy chain Pharmacity is understood to have raised financing from US distressed asset investment firm Avenue Capital Group. The value of the financing was reported to be around US$40 million. Source: Deal Street Asia
- Pharma divestment. Vietnam’s retailer FPT Digital Retail JSC is receptive to advisory pitches for the sale of up to 10 per cent in its pharmacy chain subsidiary FPT Long Chau Pharma. The company could offer between a 5% and 10% stake in FPT Long Chau to financial investors via a private placement later this year or within the first half of 2025. The deal size has not yet been fixed and is subject to negotiations with specific investors. Source: FPT Retail
- Adding hospitals to the portfolio. Private equity firm Warburg Pincus announced it is investing in Xuyen A private general hospital group. Warburg Pincus is the largest global private equity investor in Vietnam, and its investment in Xuyen A underscores the firm’s focus on the country’s rapidly emerging healthcare sector. Xuyen A owns and operates a portfolio of four large-format, multi-speciality tertiary hospitals in the country. Source: Vietnam Investment Review
Education
- A galaxy of opportunity. Vietnamese edtech company Galaxy Education is understood to be in the market to raise about $10-20 million in fresh funding to scale its business across the country. It is reported that the company has been in advanced talks with three overseas investors since the first quarter of 2024. Source: Deal Street Asia
- Young learners. Private equity firm Excelsior Capital Vietnam Partners has made an investment in Vietnam-based English language training company Kapla Vietnam. It was established in 2022 and has since opened six outlets in Ho Chi Minh City. The transaction details were undisclosed. Source: Deal Street Asia
Real Estate
- Industrial divestment. The Vietnamese government has approved a plan to cut its holding in Becamex IDC, a leading industrial real estate developer, by 30.44 per cent. Under a decision, signed by Deputy Prime Minister Le Minh Khai, the government's stake in Becamex IDC will be trimmed from 95.44 to 65 per cent throughout 2025. Becamex IDC is running seven IPs with a combined area of 4,700 hectares in Binh Duong province, a manufacturing hub in southern Vietnam. Source: The Investor
- Joining forces on data. Singapore-headquartered ST Telemedia Global Data Centres has announced a joint venture partnership with VNG Corporation, a leading technology company in Vietnam, for the development, construction and operation of data centre projects in Ho Chi Minh City. Under the joint-venture partnership, a new facility will be established in Ho Chi Minh City and expected to become operational in the first half of 2026. Source: ST Telemedia Group
