20:43 (GMT +7) - Monday 25/09/2017

Business

Synnex buys 47% stake in FPT Trading

Released at: 15:42, 12/09/2017

Synnex buys 47% stake in FPT Trading

Photo: FPT

Purchase puts FPT Trading's value at over $80 million.

by Linh San

The FPT Corporation has signed an investment agreement with strategic partner the Synnex Technology International Corporation (Synnex), the largest value-added distribution group for IT, telecom and IC components in Asia and the third-largest in the world, under which Synnex will purchase a 47 per cent holding in FPT Trading.

The transaction puts FPT Trading’s value at over $80 million, with FPT receiving VND932 billion ($41 million) from the deal, including an amount paid by Synnex and FPT Trading’s retained earnings.

“This is the best way for Synnex to enter the lucrative consumer technology, telecom and IC component market in Vietnam,” said Mr. Evan Tu, CEO of Synnex. “FPT Trading is the best distribution company in the country and has a strong track record in building, managing, and operating an effective distribution network over the last 20 years. We are excited to become its strategic shareholder. With Synnex’s expertise and experience in enriching our partners’ product management, channel development, logistics and business operations, we can further advance FPT Trading’s business quality and performance.”

“Synnex is a leading global distribution company that has been a leader in many markets and that has an advanced distribution network,” said Mr. Truong Gia Binh, Chairman of FPT Corporation. “We believe that with this investment from Synnex, FPT Trading will have a more effective development strategy going forward.”

FPT Corporation’s Board of Directors has also approved a resolution that allows the sale of a maximum of 5 per cent in FPT Trading’s charter capital to employees.

FPT Trading has more than 20 years of experience in distribution. Since the 1990s, when Vietnam’s ICT market was in its earliest stages, FPT Trading has been a leader in providing ICT products and solutions. It is currently the largest ICT - telecoms distributor in the country, with a network of 2,771 agents in all cities and provinces nationwide. It distributes products from nearly 40 globally-renowned brands to Vietnamese consumers.

Established in 1975, Synnex is a global distribution group with a footprint in 38 countries and territories and has more than 200 offices worldwide, with distribution channels reaching 60 per cent of the global population.

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