Newsletter
Vietnam M&A Spotlight - May 2020
Freshfields' Vietnam M&A Spotlight keeps you up-to-date with the key business and legal developments in this sector. Please contact us if you would also like to receive either our Vietnam Infrastructure Spotlight or our Vietnam Competition Law Spotlight.
MARKET UPDATES
General Market
- M&A declines. In the first four months of the year, there were 3,210 M&A deals involving capital of $2.48 billion, up 32.9 per cent in number but only 34.7 per cent of last year's capital. M&A deals only made up 20.1 per cent of the total foreign capital while it was 48.9 per cent last year. Source: Vietnam Investment Review
- M&A fears. Vietnamese companies face a threat of being acquired on the cheap. The Chairman of the Vietnam Chamber of Commerce said that foreign companies and investment funds are considering acquiring real estate, retail and other companies, many of which are facing difficulties and are even on the verge of bankruptcy. He petitioned Prime Minister Nguyen Xuan Phuc to temporarily stop acquisitions during the pandemic. Source: Vnexpress International
Equitisation
- Equitisation resumed. EVNGENCO 2 was valued at US$2 billion, and its IPO expected in December. EVNGENCO 2 is among the six State corporations due for equitisation this year. It is a subsidiary of Vietnam Electricity Group. Source: Vietnam News
- Equitisation push. Among 92 enterprises which must be equitised this year, there are some big companies which are expected to be attractive to investors such as Agribank, Vietnam Posts and Telecommunications Group, Vinacomin, Vinachem and Mobifone. Source: Vietnam News
- SCIC divestment plan for 2020. State Capital Investment Corporation (SCIC) confirmed its plan to divest its interests in 85 state-owned enterprises, including VNSteel, Vinatex, and Bao Viet Holdings, among others. Source: Vietnam Investment Review
Retails
- Tiki and Sendo reach merger deal. After being in merger talks for nearly a year, Tiki and Sendo have finally reached an agreement to join forces to beat overseas e-commerce platforms Lazada and Shopee. Source: Vietnam Investment Review
Banks
- VietinBank plans equity capital increase from profits. Unlike other commercial banks, VietinBank could not raise capital through additional equity issuances. State ownership could not be reduced below 65 per cent.Source: Bizhub
Automotive
- Thaco restructuring.Truong Hai Auto Corporation (Thaco) plans to restructure by spinning off its agriculture and real estate businesses to form a new company, Thaco Group. Source: Vnexpress International
Real Estate/Construction
- Vinhomes to raise US$500 million through bonds. The 18-month bonds will carry a combination of fixed and floating interest rates though the company has not disclosed the rates.Source: VnExpress International
- Japanese acquisition deal amidst COVID-19 crisis. Haseko Corporation reached an agreement to acquire a 36 per cent stake in Vietnam-based construction firm Ecoba.Source: Vietnam Investment Review
Hospitality
- M&A in Vietnam’s hospitality industry lures foreign investors post-Covid. Low or no occupancy at all are leaving many hospitality businesses in Vietnam on the verge of bankruptcy. However, this situation provides significant merger and acquisition opportunities. Source: Vnexplorer
Renewable energy
- Solar flips. As of May 11, according to the Department of Electricity and Renewable Energy, Vietnam had 92 solar power projects and 10 wind power projects with a total capacity of nearly 6,000 MW in commercial operation. A number of them have been transferred partially or wholly to foreign investors by establishing joint ventures or share sales, including investors from Thailand, the Philippines, China, Singapore and Saudi Arabia. Source: Vietnam Investment Review
Aviation
- Sale off. Qantas' budget arm Jetstar says it is in discussions with its joint-venture partner Vietnam Airlines about the future of local offshoot Jetstar Pacific, following reports it was moving to exit its minority stake. Qantas owns 30 per cent of Jetstar Pacific. Source: The Sydney Morning Herald
