The Nam Thai Investment and Development Company is estimated to have spent some VND3.67 trillion ($164.42 million) on becoming Vingroup’s third major shareholder, a representative from Vingroup’s Public Relations Department confirmed with VET on October 30. 

The Hanoi-based agricultural products exporter increased its ownership from 70,423,499 shares, equivalent to a 2.67 per cent stake, to 155,787,287 shares, or 5.91 per cent, a notification sent to the State Securities Commission (SSC) on October 26 revealed.

The purchase price has not been disclosed but Nam Thai is estimated to have spent around VND3.67 trillion ($164.42 million) given that Vingroup’s shares were trading at around VND42,850 ($1.92) after the close of the October 28 stock market session.

Major shareholders in Vingroup include its Chairman, Mr. Pham Nhat Vuong, who holds more than 532.4 million shares, or 28.5 per cent, and the Vietnam Investment Development Group (VID), with 226.6 million shares, or 12.13 per cent as at June 30. With the newly-acquired shares, Nam Thai becomes Vingroup’s third major shareholder.

Nam Thai is a leading enterprise in the distribution and export of high quality dairy cows and aims for sustainable development and bringing the greatest economic benefit to Vietnam dairy production.

Since its establishment in 2007, the Hanoi-based enterprise has been the official representative of many foreign corporations in the livestock and dairy field, including Sexing Technologies from the US, Semex from Canada, and the Rindo Company from South Korea, among others.

With a market capitalization of $4.6 billion as at August 31, Vingroup is one of the largest listed companies in Vietnam. After-tax profit stood at VND2.9 trillion ($130 million) for the first half, equal to 98 per cent of the target for the year as a whole, its report for the second quarter revealed.

Revenue in the period from Vinhomes, Vincom Retail, Vinpearl, Vinpearl Land, Vinschool, Vinmec, Vinmart and Vinpro all increased year-on-year. Revenue from real estate sales totaled VND4.5 trillion ($201.7 million), up 31 per cent year-on-year. Shopping malls and office rentals brought in VND735 billion ($33 million), up 39 per cent, while revenue from hospitality, tourism and entertainment reached VND1.1 trillion ($49 million), a 59 per cent increase compared to the second quarter of last year.

Education (Vinschool) brought in VND147 billion ($6.6 million), up 58 per cent, and hospitals (Vinmec) VND263 billion ($11.8 million), up 53 per cent, while revenue from supermarkets and convenience stores (Vinmart) increased a substantial 226 per cent to stand at VND2.5 trillion ($112 million).

Vingroup’s total net revenue for the first half was VND2.42 trillion ($108.5 million), double the result in the first half of last year and equal to 54 per cent of the 2016 target.

As at the end of June, Vingroup’s total assets stood at VND159 trillion ($7.1 billion) and total equity VND44.6 trillion ($2 billion), up VND13.8 trillion ($619 million) and VND7 trillion ($314 million), respectively, compared to the end of 2015.

VN Economic Times