The conglomerate VinGroup will sell its entire ownership in the logistics service firm Phat Loc Express and Trading JSC (Phat Loc Express), VinGroup said in a statement.

According to the statement, which was released last week, VinGroup will sell nearly eight million shares or nearly 80 per cent of the chartered capital in Phat Loc Express to withdraw its entire stake in the logistics service firm.

The buyer is believed to be logistics firm Sagawa Express Co Ltd, a member of Japan-based SG Holdings, according to a report on the Nikkei Asian Review.

Nikkei Asian Review reported that SG Holdings will purchase VinGroup’s eight million shares in Phat Loc Express for US$9 million, equal to Phat Loc Express’ sales made in 2015.

Viet Nam News has tried to contact VinGroup for further information about the deal, however, there has been no responses from the Vietnamese property developer.

Phat Loc Express, formerly known as Vinlinks, was founded in 2001 and is now the fifth-largest logistics firm in Viet Nam. The company was acquired by VinGroup in July 2015 after the giant real estate and retail group bought nearly 80 per cent of shares from Hop Nhat International Express JSC.

SG Holdings has operated in Viet Nam via a local subsidiary since 2012, handled its deliveries in HCM City and Ha Noi, and contracted local logistics firms for other areas. The deal between SG Holdings and VinGroup could be an important step for the Japanese logistics firm to expand its market share in the domestic market.

VinGroup is a giant group, operating in the real estate and retail sectors. The company has also expanded its business in online sales and logistics businesses.

In the past quarter, VinGroup recorded VND10.65 trillion ($473.3 million) in revenue and VND175 billion in net profit. In the first nine months, the company’s revenue rose 80 per cent year on year to VND34.65 trillion, and its post-tax profit tripled from last year’s figure to VND3.1 trillion.

In late November, VinGroup and Sagawa signed a delivery and logistics co-operation agreement to develop and enhance the delivery capability of VinGroup. The co-operative agreement will provide comprehensive logistics solutions for VinGroup to improve its logistics services and help the Vietnamese real estate group get access to modern management software, expected to optimise transportation solutions. — VNS