Both SK Group and South Korea’s National Pension Service (NPS) would contribute US$430 million to the fund.
South Korea’s conglomerate SK Group along with the National Pension Service (NPS) has launched a US$860-million fund to invest in Vietnamese companies, through which the South Korean conglomerate could ramp up investment in Vietnam’s two biggest companies – Vingroup and Masan Group, the Korean Investors reported.
For the corporate partnership (COPA) fund, NPS and SK will contribute US$430 million, respectively. It will be managed by South Korea’s SKS Private Equity and Stonebridge Capital, according to investment banking sources on December 18.
The NPS-SK fund comes after SK Group invested US$1 billion to buy a 6.1% stake in Vietnam’s biggest company Vingroup in May, thus becoming the latter’s strategic investor.
Last September, SK Group invested US$470 million to purchase 110 million treasury shares of Vietnam’s Masan Group Corporation, equivalent to a 9.5% stake, becoming Masan’s largest foreign shareholder.
Moreover, SK Group has provided a non-refundable grant worth US$30 million to facilitate the development of the National Innovation Center (NIC) in Vietnam.
Alongside the investments, SK Group received an option to co-invest in new businesses with the Vietnamese companies and priority rights to make an equity investment for their M&A deals and to buy a stake in units of the Vietnamese groups when they are floated on the stock market.
In a meeting with Prime Minister Nguyen Xuan Phuc in June, SK Group’s Chairman Chey Tae-won said the group is committed to long-term business in Vietnam and willing to support the country’s initiatives for development in the future. Hanoitimes
Up to 93 percent of the businesses from the Republic of Korea (RoK) are satisfied with their investments in Vietnam, according to a recent survey conducted by the Korea Trade and Investment Promotion Agency (KOTRA).
A recent survey by the Korea Trade-Investment Promotion Agency (KOTRA) showed that 93 percent of Korean enterprises operating in Vietnam expressed satisfaction when investing in the country.