Vingroup to raise US$400 million by selling shares to Hanwha Asset Management
Vingroup - Vietnam`s largest privately-run conglomerate - is expected to increase its charter capital by VND840 billion (US$36.08 million) to VND32.75 trillion (US$1.4 billion) after the share issuance.
Vingroup expects to raise VND9.32 trillion (US$400 million) by issuing preference shares to Hanwha Vietnam Opportunity Private Fund 1 under Hanwha Asset Management, an affiliate of South Korea's Hanwha Life Insurance in a private placement, said the group on August 22.
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Additionally, the said share amount will not be transferable for one year.
Vingroup's charter capital is expected to increase by VND840 billion (US$36.08 million) to VND32.75 trillion (US$1.4 billion) after the issuance.
At the close on August 22, Vingroup's market capitalization reached VND330.65 trillion (US$14.21 billion), according to the Ho Chi Minh City Stock Exchange (HoSE), accounting for nearly 10.5% of the stock market's total capitalization.
In the first six months this year, Vingroup`s pre-tax profit nearly doubled from VND3.14 trillion (US$134.3 million) to VND6.23 trillion (US$266.5 million).
In June, VinFast, a subsidiary of Vingroup, signed a strategic partnership agreement with General Motors (GM). As part of the alliance, VinFast will become the exclusive distributor for the Chevrolet brand in Vietnam and assumes ownership of the GM Hanoi factory.
The group later signed another agreement with Spain-based technology company BQ through another subsidiary VinSmart, which will acquire intellectural property rights from BQ to develop two models of smartphone for the high-end and mid-range segments under the Vsmart brand.
By the end of 2016, Hanwha Asset Management was one of South Korea's top two asset management companies with US$71.49 billion in assets under management, it claims.
Meanwhile, Hanwha Group is one of the 10 largest corporations in Korea and is among the top 500 largest economic groups in the world, with a global network of 325 members worldwide as of December 2017.
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Vietnam news in brief - August 24
Read The Hanoi Times to stay up to date on developments in Vietnam.
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- Vietnam Railway proposes US$87 million for Hanoi–Dong Dang railway upgrade
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