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Consortium buys 6% stake in Vinhomes for US$650 million

A KKR-led consortium has acquired a 6 per cent stake in the residential property developer Vinhomes JSC for US$650 million

 

​ The Vinhomes Ocean Park in Hà Nội. Residential real estate firm Vinhomes JSC (HoSE: VHM) has sold a 6 per cent stake to the KKR-led consortium for US$650 million. — Photo vinhomes.vn

 

A consortium led by the US global investment firm KKR has acquired a 6 per cent stake in the residential property developer Vinhomes JSC for VND15.1 trillion (US$650 million).

After the deal, conglomerate Vingroup JSC will remain the controlling shareholder of Vinhomes. Transactions were carried out via the put-through system at the Ho Chi Minh Stock Exchange (HoSE) on June 15.

The consortium also included the Singapore-based investment firm Temasek.

Vinhomes shares (HoSE: VHM) dived 6.7 per cent to end at VND70,000 apiece on June 15 but have bounced back by total 10.6 per cent to trade at VND77,400 apiece on June 16.

The investment “underscores the attractiveness of Viet Nam as a regional investment destination with its strong development and growth prospects,” KKR said in a statement on June 16.

“The investment into Vinhomes further emphasises the attractiveness of Vinhomes as an investment opportunity given its position as Viet Nam’s leading integrated real estate platform with unparalleled execution capabilities, access to sizeable land bank and significant growth opportunities in residential, commercial and industrial real estate.”

In the first quarter of the year, Vinhomes posted an 11.4 per cent on-year increase in its net revenue, which reached VND6.52 trillion.

Financial income tripled to VND8.59 trillion thanks to transferring VND7.5 trillion worth of stakes in member companies.

Post-tax profit jumped 184.5 per cent on-year to VND7.64 trillion in the first quarter.

In 2019, the company earned VND51.83 trillion in total net revenue, up 34 per cent on-year, and VND24.2 trillion in total post-tax profit, up 69 per cent on-year.

“This investment exemplifies the type of platinum brands and management teams KKR looks to work with in Southeast Asia,” Ashish Shastry, co-head of Private Equity for KKR Asia Pacific and head of Southeast Asia, said on June 16.

“Today’s announcement further underscores our strong commitment to Viet Nam, where KKR has been active and present for nearly a decade.

“We believe that the investment demonstrates the confidence of international investors in Vinhomes, Vingroup and the Vietnamese market,” Vinhomes Chairwoman Nguyen Dieu Linh said.

“KKR’s expertise and proven track record of helping companies achieve long-term success will be valuable… to enhance value for Vinhomes shareholders,” she said. — VNS

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