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VietNamNews

Vingroup raises $400m from Hanwha Asset share deal

Update: August, 23/2018 - 19:00
A Vincom Centre located on Nguyễn Chí Thanh Street, Hà Nội. Vingroup has raised $400 million from issuing 84 million shares to South Korean firm Hanwha Asset Management. — Photo vietnamfinance.vn
Viet Nam News

HÀ NỘI — Real estate and retail conglomerate Vingroup has raised VNĐ9.32 trillion (US$400 million) from issuing 84 million convertible dividend preference shares to Hanwha Assset Management, an affiliate of the South Korean conglomerate Hanwha Group.

The 84 million shares were issued at a price of VNĐ110,976 ($4.93) per share, Vingroup said in a press release on Wednesday.

The shares would be restricted from trading for one year from the date of issuance, Vingroup said.

“This investment from Hanwha is a demonstration of its trust in Vingroup as well as an endorsement of the growth potential of the Vietnamese market,” the Vietnamese firm said.

The share issuance is expected to raise Vingroup’s charter capital by VNĐ840 billion to VNĐ32.75 trillion, equal to more than 3.27 billion shares.

Vingroup is the largest non-State owned company in Việt Nam and has nearly 3.2 billion shares on the HCM Stock Exchange.

Vingroup shares rose 2.65 per cent in the last six trading sessions to end Thursday at VNĐ104,600 per share.

VIC notched its all-time high of VNĐ111,560 per share on April 9, the same day as the benchmark VN Index on the HCM Stock Exchange set a record high of 1,204.33 points.

Vingroup operates across seven major business divisions, including property, hospitality and entertainment, consumer retail, healthcare and education.

The Vietnamese company has two of its subsidiaries listed on the HCM Stock Exchange: Vincom Retail JSC and Vinhomes JSC.

Hanwha Asset Management is owned by the South Korean firm Hanwha Life Insurance. The company is among the top three asset management companies in South Korea.

The parent company of Hanwha Asset Management, Hanwha Group, is one of South Korea’s top 10 conglomerates and a Fortune Global 500 company, comprising 61 affiliates in the country alone and had 325 offices worldwide as of December 2017.

The South Korean conglomerate has a diversified business portfolio, ranging from advanced chemicals and sustainable energy to financial services. — VNS

 

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