14:01 (GMT +7) - Friday 24/05/2019

Business

SK Group to buy $1bn worth of Vingroup shares

Released at: 16:38, 16/05/2019

SK Group to buy $1bn worth of Vingroup shares

Photo: Vingroup

Deal to come under a strategic partnership signed on May 16.

by Ngoc Lan

South Korea’s SK Group will invest VND23.3 trillion ($1 billion) in purchasing Vingroup shares under a strategic partnership agreement signed on May 16 in Hanoi.

The strategic investment is a clear demonstration of SK’s trust in Vingroup as well as an endorsement of both parties’ confidence in the growth potential in Vietnam. The SK Group will become a strategic partner of Vingroup following the transaction.

The two intend to enter into future joint strategic investments that will leverage each party’s expertise and enhance the ability of both to serve the Vietnamese market and the region.

The transaction is subject to customary regulatory approvals and the listing of primary shares issued on the Ho Chi Minh Stock Exchange. Credit Suisse acted as sole advisor to Vingroup.

Mr. Woncheol Park, Representative Director of SK South East Asia Investment, said that partnering with a local champion such as Vingroup to explore new business opportunities is an ideal strategy for SK’s expansion in Southeast Asia. “We also are expanding in Vietnam with a long-term goal of contributing to the local agenda and the economic advancement of the nation,” he added. “In this regard, we have a lot of respect for Vingroup and the significance of their role in Vietnam’s economy. Through this strategic partnership, we greatly look forward to working closely with Vingroup and creating vast synergies for both groups and for Vietnam.”

Mr. Nguyen Viet Quang, Vice Chairman and Chief Executive Officer of Vingroup, said it welcome SK as a strategic partner. “We believe that with SK’s deep experience as a leader in many of its businesses, its solid business foundation, and achievements in technology, SK will bring about invaluable experience that will enable Vingroup to reach new heights, especially in the fields of Industrials and Technology,” he noted.

The SK Group is the third-largest conglomerate in South Korea by asset size. It was founded in 1953 and has 111 subsidiaries in various sectors including energy, chemicals, telecommunications, ICT, semiconductors, and service sectors. It operates globally in over 40 countries and territories and had combined revenues of $132 billion and assets of $184 billion as of year-end 2018.

Vingroup is the largest private-owned group in Vietnam and ranks in the Top 10 Largest Enterprises in Vietnam (including FDI and State-owned enterprises), with a main focus on Services, Industry and Technology, which includes real estate, consumer retail, automobile and motorcycle manufacturing, smart devices, agriculture, education, and healthcare. In 2018, Vingroup announced its vision to become a world-class Technology - Industrials - Services group.

User comment (0)

Send comment