Vingroup reports acquisition, sale of multiple companies
In this article (5)
Vietnam’s biggest private conglomerate Vingroup sold stakes in five companies and acquired shares in six others last year, according to its audited consolidated financial statement.
It sold 80 percent each of MV Real Estate JSC and the MV1 Real Estate JSC to Mitsubishi Corporation and Nomura Real Estate Development of Japan, and 90 percent of S-Vin Vietnam Real Estate Trading JSC to Japanese real estate company Samty Co., Ltd.
Vingroup earned profits of nearly VND16.9 trillion ($728.45 million) from the three deals.
It also sold a 25 percent stake in Phu Quoc Tourism Development and Investment JSC for a profit of over VND1.4 trillion, and currently owns a 5 percent stake.
The conglomerate signed a deal with the Phu Quoc Tourism Development and Investment JSC to operate hotels, golf courses, and beachfront villas in Phu Quoc Island’s Bai Dai ecotourism area and Vinpearl Safari.
It sold a 40 percent stake in animal feed company Viet Thang Feed JSC and now owns 26.34 percent of it.
Vingroup spent over VND15 trillion to buy mining company Huong Hai-Quang Ngai Company Limited, real estate companies Dai An Investment Construction JSC and Nguyen Phu Trading Investment JSC, and hotel and restaurant operating firms Hon Mot Tourism JSC and Cam Ranh Invest JSC.
It bought a 96.5 percent stake in Bao Lai Investment JSC, which mines and processes white marble to produce ground calcium carbonate powder for VND2.7 trillion. Last year Bao Lai reported a loss of VND367 billion.
Vingroup reported revenues of VND110.4 trillion, down 15.5 percent from 2019. Its pre-tax profit was VND13.9 trillion, a year-on-year decrease of 10.7 percent.
Questions & Answers
Q.What was the combined profit Vingroup made from selling stakes in MV Real Estate JSC, MV1 Real Estate JSC, and S-Vin Vietnam Real Estate Trading JSC?
What was the combined profit Vingroup made from selling stakes in MV Real Estate JSC, MV1 Real Estate JSC, and S-Vin Vietnam Real Estate Trading JSC?
Vingroup earned nearly VND16.9 trillion from the sales of these three companies. These deals involved Japanese companies acquiring significant stakes in the real estate businesses.
Q.Which types of companies did Vingroup acquire last year, and what was the approximate total spend?
Which types of companies did Vingroup acquire last year, and what was the approximate total spend?
Vingroup acquired a mining company, two real estate companies, and two hotel and restaurant operating firms. They spent over VND15 trillion on these acquisitions, including a significant stake in Bao Lai Investment JSC.
Q.How did Vingroup's revenues and pre-tax profit change compared to the previous year?
How did Vingroup's revenues and pre-tax profit change compared to the previous year?
Vingroup's revenues decreased by 15.5 percent from 2019, reaching VND110.4 trillion. Its pre-tax profit also saw a year-on-year decrease of 10.7 percent, settling at VND13.9 trillion.
Q.What is Vingroup's current ownership stake in Phu Quoc Tourism Development and Investment JSC after its recent sale?
What is Vingroup's current ownership stake in Phu Quoc Tourism Development and Investment JSC after its recent sale?
After selling a 25 percent stake in Phu Quoc Tourism Development and Investment JSC, Vingroup now retains a 5 percent ownership. They also signed a deal to operate facilities there.