HSC steps in Vinasun as major shareholder after GIC's exit
Ho Chi Minh City Securities Corporation (HSC) has completed the purchase of 7.2 million shares, equivalent to 10.6% charter capital in taxi firm Vinasun, according to the Ho Chi Minh Stock Exchange (HoSE).
The transaction was completed on May 25 on HoSE.
Illustration photo.
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After the deal, HSC is currently the third largest shareholder at Vinasun, after Vinasun Chairman Dang Phuoc Thanh of 35% and private equity investor TAEL Partners of 18.3%.
The deal coincided with Singapore's sovereign wealth fund GIC's decision of divesting its entire 5.4 million shareholding from the taxi firm. At a price of VND13,900 (US$0.6) per share, GIC divested its holding for VND75 billion (US$3.3 million) for less than half of its investmente, suffering a loss of around VND120 billion (US$5.28 million).
HSC's decision to purchase Vinasun shares in the context of its shares nosediving in value. From the peak of over VND36,000 (US$1.58) at the end of 2014, Vinasun shares have lost more than 60%, moving around VND14,000 (US$0.61) each currently.
Vinasun set revenue target at VND2.1 trillion (US$92.5 million) this year, a reduction of nearly VND1 trillion (US$44 million) year-on-year.
The company's after-tax profit is expected to reach VND95 billion (US$4.2 million) in 2018, down 50% year-on-year.
This is the fourth consecutive year that Vinasun decided to lower the revenue target, due to fierce competition from ride-hailing firms such as Grab, which has acquired Uber's Southeast Asia operations.
Consequently, its after-tax profit in 2017 was VND189 billion (US$8.32 million), decreasing around 40% as compared with the figure in 2016 and at 92.3% of the year target.
Vinasun has witnessed a sharp decline in revenue over the past years. In 2014, the figure was VND3.7 trillion (US$163 million), VND4.2 trillion (US$185 million) in 2015, VND4.5 trillion (US$198.2 million) in 2016 and of VND2.7 trillion (US$119 million) in 2017.
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