Jardine Cycle & Carriage to spend US$168 million for Vietnam’s THACO stake
For a share price of VND128,500 (US$5.52) apiece, the company’s valuation is set at VND217.8 trillion (US$9.4 billion).
Board members of Truong Hai Auto Corporation (THACO) - one of Vietnam’s leading car manufacturers, have approved plan to sell over 30.3 million shares worth VND3.89 trillion (US$168 million) to its strategic investor Singapore-based Jardine Cycle & Carriage (JC&C) through private placement, stated the Vietnamese company in a statement.
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The sale is scheduled to take place in 2019. Once completed, THACO would increase its charter capital to VND16.95 trillion (US$728.17 million), while JC&C would increase ts stake-holding in THACO to 26.57% from the previous 25.23%.
The issued share amount would be non-transferable in one year, according to THACO.
THACO’s chairman Tran Ba Duong, his wife Vien Dieu Hoa and their wholly-owned company Tran Oanh hold a combined of 71% stake in THACO.
For the company’s valuation of US$9.4 billion, Duong’s family is estimated to hold assets worth US$6.7 billion. Meanwhile, the net worth of Vietnam’s richest business man and founder of privately-run conglomerate group Vingroup Pham Nhat Vuong is US$6.6 billion, according to Forbes.
In 2018, THACO sold over 96,100 cars nationwide, according to Vietnam Automobile Manufacturers’ Association (VAMA), up 7% year-on-year and 34.7% of the VAMA’s market share.
At the end of 2017, JC&C spent US$400 million to acquire an additional of nearly 49 million shares from Vietnam’s largest dairy producer Vinamilk, taking its total investment capital at the latter to US$1.01 billion for 129.1 million shares, equivalent to an 8.9% stake.
JC&C is currently the third largest shareholder at Vinamilk, after State Capital Investment Corporation (SCIC) with 36% and F&N Dairy Investment with 17.31%.
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