Big FPT shareholders divest for portfolio restructuring
Big FPT shareholders divest for portfolio restructuring
Singapore-based Orchid Fund and Truong Dinh Anh, a board member of FPT, have successfully divested from the listed technology firm.
The former last week sold more than 29 million shares, or some 10 percent stake of FPT, worth over VND1.3 trillion ($6.11 million) via negotiated transaction.
The divestment, taking place about 2 years after Orchid Fund channeled money into FPT, is said to help the fund restructure its overseas investment portfolios.
Though the value of initial Orchid Fund’s investment in FPT has never been revealed, many insiders said it can be a very successful investment in terms of profit.
Orchid Fund became the largest shareholder of FPT from October 2011 and increased ownership in the corporation to 29.168 million shares, representing 10.65 percent stake of the FPT in the first half of 2012.
Specifically, in January 2012, Orchid Fund bought 4.3 million shares of FPT at around VND34,000 per share. It continued to buy 1.8 million FPT shares at a price of VND 36,000 per share one month later.
By May 2012 , Orchid Fund held more than 21 million FPT shares , equivalent to 9.81 percent of the company's stake, and continued to buy nearly 11 million FPT shares during the month, but the purchase failed as the price of FPT share shot up.
Instead of direct purchase on the stock exchange, Orchid Fund was transferred 2.7 million FPT shares from 3 other foreign investors as of July 5, 2013.
Since Orchid Fund began to pour money in FPT, FPT increased its charter capital by 25 percent, with total cash dividend of 45 percent of the face value of the share.
Moreover, the difference in the buying and selling price of FPT share at around VND7,000 per share, the divestment of 29 million FPT share may initially help the Singaporean fund to pocket a hefty amount of money.
In addition to the divestment of Orchid Fund, Mr. Truong Dinh Anh , FPT board members recently announced the sale of over 1 million FPT shares, citing portfolio restructuring.
New comers?
Following the divestment of Orchid Fund, many are questioning if there will be a big foreign shareholders to fill in the gap.
Insiders told the local press that a group of investors have bought the majority stake in FPT via the divestment. But as those organizational investors still do not own over 5 percent of the stake each, they are not required disclose information about their deals.
Because the FPT shares sold by the fund to foreign investors, the room for foreign investors continues to remain unchanged at 49 percent.
About the biggest shareholders of FPT, chairman FPT Truong Gia Binh became the largest shareholder of FPT with 7.1 percent stake, followed by the State Capital Investment Corp ( SCIC ) with 6 percent stake.
FPT has 6 foreign institutional shareholders , including Red River Holding (5.73 percent), Vietnam Equity Holding (1.65 percent), Dragon Capital Vietnam Fund (1. 63 percent), Amersham Industries Limited (1.6 percent) , Vietnam Enterprise Investments Limited (1.54 percent) and Wareham Group Limited (1.48 percent).
Also last week, an investor group related to Dragon Capital - Norges Bank, including Amersham Industries Limited, Balestrand Limited, Grinling International Limited, Wareham Group Limited, Vietnam Enterprise Investment Limited, Norges Bank, announced the acquisition of additional 3.55 million FPT shares, bringing the total ownership in FPT to 17.324 million shares, representing 6.3 percent stake in the group.
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