The “cash king” and the multi-trillion dong takeover deals

Apr 16th at 22:27

16-04-2013 22:27:41+07:00

The current economic difficulties have brought the golden opportunities to the big tycoons to crush their quarries.

Spending money to buy businesses
The 2012 audited finance report of Masan Group (MSN) showed that MSN bought Hoa Muoi Gio (HMG) single member Company Ltd and used it as an instrument to buy 40 percent of the benefits of the animal feed manufacturer Proconco.

The total value of the deal was about VND2,028.01 billion, including VND10 million worth of HGM’s stockholder equity and VND2.028 trillion worth of the loans provided by MSN to HGM.

In early 2013, Masan Consumer JSC, a subsidiary of MSN, wrapped up the deal of buying back 24.9 percent of stakes, or 2 million shares of Vinh Hao Mineral Water JSC from Gemadept, a shipping firm. The share price was reported at VND85,000 per share, equal to 240 percent of the OTC (over the counter) market price.

MSN has also revealed that it is considering buying up to 100 percent of stakes of a fast consumer goods company in Vietnam with the total value of VND700 billion at maximum.

Prior to that, its takeover of Vinacafe Bien Hoa succeeded in September 2011 after an open share collection of 50 percent of the coffee manufacturer’s chartered capital.

Hung Vuong JSC has completed the takeover of Viet Thang Animal Feed JSC after spending hundreds of billions of dong to buy shares to raise its ownership ratio from 28.54 percent to 55.31 percent.

It’s now the right time for the big guys with powerful financial capability to gather strength to push up the “attacks” to the targeted companies and complete the attacks with victories.

HVG alone has implemented a series of affairs, including the ones on buying 5 million shares of Sao Ta Food Company (FMC), and the shares of An Giang Seafood Company to raise its ownership there to 51 percent. It also has bought 18 percent of the Ben Tre Forestry and Seafood Company, and 25 percent of shares of Tac Van Seafood Processing Company.

In the real estate market, a lot of successful transactions have been reported, including the ones in which Dat Xanh Real Estate Company bought a series of projects – the 2 apartment blocks at Thien Loc project, all the apartments of Sunview 5 project.

The merger and acquisition market has become scorching hot with a series of deals. Cadivi has bought the Saigon Cable Company, Danh Khoi A Chau has bought Nhat Lan apartment project in Binh Tan district in HCM City. DOJI, a gold and gemstone group bought 20 percent of Tien Phong bank’s stakes.

The buyers’ market

It’s clear that buyers have more advantages over the sellers, most of whom now have to “struggle in the storm.” A lot of them have become worn out and they have to find the lifebuoys by selling parts of their assets.

By buying Viet Thang, an animal feed manufacturer, Hung Vuong now can develop a close production chain which allows cutting down the production expenses. After having Viet Thang and An Giang Seafood, Hung Vuong is likely to have the export turnover amounting to 25-30 percent of the total export turnover, about $3 billion, by 2015