Vingroup may become strategic investor in VEFAC
Vingroup may become strategic investor in VEFAC
Property developer Vingroup may acquire an 80 per cent stake in Vietnam Exhibition Fair Centre Co. Ltd. (VEFAC) and become a strategic investor in the firm.
Local media said Vingroup had received the approval of Prime Minister Nguyen Tan Dung for the acquisition late last year, and VEFAC was also willing to transfer the stake to the real- estate company.
Vingroup is expected to be capable enough to help VEFAC boost its human resources and enhance financial and management capacity, besides expanding markets and developing national exposition centres.
Biz Hub tried to contact a communication official at Vingroup for further comment on March 18, but she could not be reached.
Meanwhile, the Ha Noi Stock Exchange (HNX) had announced that 29 investors have registered to buy 620,500 shares of VEFAC during its initial public offering (IPO), to be held on the northern bourse on March 20. These shares are equivalent to only about 4 per cent of the stake that the company plans to offer to the public.
The company said in an online statement that it would auction nearly 16.27 million shares during the IPO at an initial price of VND10,050 (48 US cents) per share.
This volume of shares will account for 9.76 per cent of the firm's charter capital, which is expected to surge from VND166.6 billion (US$7.93 million) to nearly VND1.67 trillion ($79.52 million) after the privatisation.
Within three years of its equitisation, the company will spend current equity on business activities related to exhibitions and fairs. It also plans to use the additional amount for new property investments.
VEFAC's annual after-tax profits have reportedly ranged between VND3 billion and VND6.2 billion (between $142,860 and $295,240) over the last three years. The ratio of profits on net revenue varied from 1.6 per cent to 9 per cent.
According to the company, the State will owns 10 per cent of its future equity, while 0.24 per cent will be offered to employees. The State-owned firm was established in 1974 and is headquartered in Ha Noi's Ba Dinh District.
