SK Group plans to buy US$1 billion Vingroup shares

Update: March, 23/2019 - 07:00
A Vincom Centre developed by Vincom Retail, a sub-unit of the real estate-technology-retail giant Vingroup. – VNS Photo
Viet Nam News

HÀ NỘI — South Korean conglomerate SK Group plans to purchase US$1 billion worth of stocks in Việt Nam’s real estate-retail-tech giant Vingroup, according to Bloomberg.

The investment could be made as early as April, Bloomberg said on Friday, citing South Korea’s Maeil Business Paper.

Vingroup has recently asked shareholders to approve its private issuance of 250 million shares to a maximum of five foreign institutional investors to raise at least VNĐ25 trillion (US$1.07 billion).

The capital raised from share issuance would be spent on developing technological and industrial sub-units (VNĐ6 trillion), paying loans and interests (VNĐ10 trillion), and providing extra fundd for the parent firm and its subsidiaries (VNĐ9 trillion).

Vingroup is now the largest listed company in Việt Nam by market capitalisation, which reached VNĐ373.42 trillion at the end of Friday.

The company shares gained 1.4 per cent to end Friday at VNĐ118,600 per share.

In 2018, SK Group bought 110 million shares in the largest private equity consumer firm Masan Group for VNĐ11 trillion ($470 million), becoming the largest foreign shareholder with a 9.5 per cent stake.

The South Korean group operates in the fields of energy, telecommunication, high-tech components, logistics and services. It is present in more than 40 countries and territories, earning $141 billion in 2017. — VNS