FPT to sell its retail unit in the first quarter of 2017
FPT to sell its retail unit in the first quarter of 2017
FPT Corporation, Viet Nam’s largest information and technology (IT) group, will conclude the selling of its retail unit FPT Shop next year, ICTnews reported yesterday.
Nguyen Bach Diep, CEO of FPT Shop, told ICTnews that FPT Corporation (FPT) will reveal its divestment plan at the end of 2016, however, selection of potential investors could be completed in the first quarter next year.
The delay might be due to missing required documents, or perhaps FPT is in talks with potential investors, she said.
FPT will not sell entire its stake in FPT Shop, at least at the moment, Diep added. However, she is uncertain about the future plan of the IT group.
FPT is now an IT group that works in several fields, including IT, telecommunication, retail and distribution.
The deal--if it comes into practice--will help FPT become a pure IT group that works only in the IT and telecommunication sectors, which may boost the value of the group in the international markets and increase its returns in the future.
Diep said that FPT will cut its ownership in the retail business to below 50 per cent and it will co-operate with individual investors to make sure it still has the control over FPT Shop.
FPT Shop will seek financial investors who have experienced e-commerce, good administrative skills and broad international relationships, she said, noting that the process of selecting investors will take a lot of time, as the company wants to ensure benefits for its current shareholders.
While the identities of the investors have not been released yet, FPT will continue to make investments in FPT Shop’s business projects, she said.
“The group will continue investing in FPT Shop’s feasible business projects to increase the value of the retail business unit, which will benefit shareholders more.”
The divestment of FPT from two of its business sectors, FPT Trading and FPT Retail, was approved by shareholders at the end of last year. The search for investors was confirmed by FPT in March and it was expected to finish at the end of this year.
At the end of November, FPT recorded a combined revenue of VND35.87 trillion (US$1.59 billion), similar to last year’s figure and a pre-tax profit of VND2.63 trillion, a year-on-year increase of 8 per cent.
FPT targets a revenue of VND45.8 trillion and a pre-tax profit of VND3.15 trillion for this year. Thus, after 11 months, FPT has accomplished 78 per cent and 83 per cent of its targeted earnings.
