According to a report by the M&A Vietnam Forum, in the first six months of 2018, the total value of M & A deals in Vietnam reached $3.35 billion, equivalent to 139% of that in the same period in 2017. Specifically, the real estate sector achieved a dominant position with 66.75%, followed by finance and banking (19.06%) and industrial production (9%).
Following are 6 highlighted M&A deals in 1H2018:
1. Nomura Real Estate Development purchased a 24% share in the Sun Wah office building
Nomura Real Estate Holdings, Inc, a Japanese real estate company, has announced their acquisition of 24% stake of Sun Wah Tower – a class A office building located in District 1, Ho Chi Minh City.
Sun Wah Tower, which was built and operated by Sun Wah Corporation, holds a ground floor, 22 floors with a total usable floor area of 20.800 squares meters.
Nomura Real Estate Asia highly appreciates the prime location of the this building. Currently, 85% of tenants are foreign-owned companies and the occupancy rate was 99% at the end of 2017.
2. CVH Nereus Pte. Ltd. purchased 16.9 million shares, accounting for 99.5% of chartered capital of Hien Duc Tay Ho JSC (HDTH).
CVH Nereus Pte. Ltd, which is a subsidiary of CapitaLand Group, purchased 16.9 million ordinary shares, accounting for 99.5% of chartered capital of Hien Duc Tay Ho JSC (HDTH), equivalent to VND685 billion (USD29.8 million ) in March 2018.
HDTH owns a 0.9 hectares land area in Tay Ho District, Hanoi, where an apartment complex will be constructed.
3. Frasers Property purchased 24 million ordinary shares of Tran Thai Limited Company
In April 2018, Frasers Property acquired 24 million ordinary shares of Tran Thai Co., Ltd, representing 75% of the equity of Phu An Khang Real Estate JSC (PAK).
In the coming time, PAK will construct a residential and commercial project on its own land in District 2, Ho Chi Minh City. The deal was worth VND408.6 billion (equivalent to $18 million).
4. Keppel Land Co., Ltd divested from QLP with VND702 billion ($ 30.6 million).
Via its subsidiary - Capital Land Thu Thiem Co., Ltd and indirect subsidiary – Orbista, Keppel Land (a subsidiary of Keppel Limited Company) stroke a VND702-billion deal to divest its capital from QLP.
After the deal, KLL will hold 15% share of QLP via Orbista. Accordingly, Keppel Corporation Limited is expected to divest indirectly the remaining 15% of stake in QLP through its subsidiary - Oil Asia, which holds a 100% stake in Orbista. More detailed information will be announced by Keppel Corporation Limited in the coming time.
5. Berjaya Land Berhad divested 32.5% stake in Berjaya Vietnam Financial Center Limited (BVFC) for Vinhomes JSC and Can Gio Tourism Corporation
Malaysia's Berjaya Land Berhad announced that its subsidiary- Berjaya Leisure (Cayman) Limited (BLeisure Cayman) had divested its 32.5% stake in Berjaya Vietnam Financial Center Limited (BVFC) for Vinhomes JSC and Can Gio Tourism Corporation at VND884.9 billion ($ 38.4 million).
Before divesting its capital at BVFC, BLeisure Cayman contributed VND967.3 billion (US $ 42 million), accounting for 100% of BVFC's chartered capital. However, in March 2018, Vinhomes invested VND2,008.7 billion ($87.3 million) in BVFC, which made BLeisure Caymans’ share in BVFC decrease from 100% to 32.5%.
According to the latest press release, BVFC is developing projects including "office buildings, five-star hotels and shopping malls on 6.64 hectares of land in District 10, Ho Chi Minh City. The company has not officially operated yet.
6. Sembcorp Infra Services (SIS) has signed a share subscription agreement with CRE Asia
SIS will increase its equity to 20.5 million ordinary shares through the issuance of new ordinary shares, and CRE Asia has agreed to invest $6.2 million in SIS for 6.2 million shares, Sembcorp Development holds the 70% remaining.
SIS and its wholly-owned subsidiary are the developers of approximately 30,000-square-meter factory space in the Vietnam Singapore Industrial Park (VSIP) in Hai Phong, Vietnam. Capital from CRE Asia and bank loans will finance this project.
Compiled by: VietnamCredit