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NPS & SK Group set up Vietnam investment fund

Released at: 18:26, 24/12/2019

NPS & SK Group set up Vietnam investment fund

Photo: NPS

$860-million fund to invest in local companies, via which SK may also raise holdings in two major local concerns.

by Doanh Doanh

The National Pension Service (NPS) has launched a 1 trillion won ($860 million) fund with the SK Group to invest in Vietnamese companies, through which the South Korean conglomerate could ramp up its investments in Vietnam’s two biggest companies, Vingroup and the Masan Group, according to a report by The Korea Economic Daily on December 18.

For the corporate partnership (COPA) fund, NPS and SK will contribute $430 million, respectively. It will be managed by South Korea’s SKS Private Equity and Stonebridge Capital, the report quoted investment banking sources as saying.

The NPS has set up COPA funds with domestic companies to help its overseas expansion since 2011.

In 2019, the $610-billion pension scheme earmarked $860 million in commitments to three COPA funds.

The NPS-SK fund comes after the SK Group invested $1 billion to buy a 6.1 per cent stake in Vietnam’s biggest company, Vingroup, in May, following its $470 million investment in Masan for a 9.4 per cent stake in 2018.

Alongside the investments, the SK Group also received an option to co-invest in new businesses with the Vietnamese companies and priority rights to make an equity investment in their M&A deals and to buy a stake in units of the groups when they are floated on the stock market.

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