Thaco Group seeks to sell 10 per cent stake in Thaco Auto
Thaco Group seeks to sell 10 per cent stake in Thaco Auto
THACO Group, the conglomerate led by Vietnamese billionaire Tran Ba Duong, is looking for investors to acquire a 10 per cent stake in THACO Auto, its subsidiary specialising in vehicle manufacturing and sales.
The move is part of THACO Group's development strategy for its subsidiary companies, including THACO Auto.
As quoted by Vnexpress, Nguyen Hung Minh, vice chairman of THACO Group's Board of Directors said, "The sale of a 10 per cent stake in THACO Auto to strategic investors will facilitate production and business activities, investment to expand the retail network, and the development of new products."
Additionally, the employee stock ownership plan shares issued by THACO in 2018 have been converted to make THACO Auto a joint-stock company. They are set to be listed on the stock market within the next three years.
Minh further revealed that several domestic and foreign investors are currently in discussions with THACO and its advisory firm, the Ho Chi Minh City Securities Corporation, to explore the acquisition of stakes in THACO Auto.
While negotiations are ongoing and no decisions have been made, he mentioned that THACO expects to complete the deal this year, as reported by Vnexpress.
The group is reportedly also considering the possibility of selling approximately 20 per cent of THACO Auto's shares, with an estimated value of around $5 billion. The proceeds from this transaction could be used to invest in THACO's real estate projects.
THACO Group is a diversified conglomerate with interests in automotive manufacturing, the agricultural sector, mechanical and support industries, construction investments, logistics, and commercial services.
THACO Auto, the flagship unit of the group, is responsible for the manufacturing, assembly, distribution, and retail sales of various brands, including KIA, Mazda, Peugeot, and BMW, with a network of nearly 400 showrooms nationwide.
Additionally, the company develops THACO-branded buses. THACO Auto currently operates seven production facilities located in Chu Lai Economic Zone in the central province of Quang Nam.
Minh added that all THACO Auto's vehicle manufacturing activities are exclusively conducted there and not elsewhere.
