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The top 5 most significant M&A in Vietnam in 2016

Thursday 05, 01 2017
It was recognized as the most valuable M&A transfer, ruling all the news during that specific time.
The top 5 most significant M&A in Vietnam in 2016
  1. Big C market chain shifted to Central Group

Transferring fees: USD 1.1 billion

It was recognized as the most valuable M&A transfer, ruling all the news during that specific time.

In particular, in late April, a Thai big firm named Central Group had confirmed the $1.1 billion deal and successfully took over Big C Vietnam from Casino-France. Surprisingly, it merely took 2 months to complete the deal, beating other giants such as Berli Jucker (Thailand), Lottle Group (South Korea), Aeon (Japan), etc.

Currently, Big C is listed as one of the biggest market chain in Vietnam, owing 43 agencies and other 30 shopping malls throughout the country, as well as the huge net profit before taxation, about 14,000 billion VND reported in 2015.

Moreover, before announcing that transfer, Central Group had already owned 49% shares of Nguyen Kim electrical supermarket chain. It is not to mention that, Central Group Vietnam (established in 2011) also owns many other valuable properties as well, including 4 shopping malls, 27 sport stores, 30 fashion supermarkets, 1 hotel, 21 electrical retailers, 1 online shopping website and 13 Lanchi supermarkets.

2. Thailand’s TCC Holdings acquired Metro Vietnam

Transferring fess: $ 710 million

        The first M&A transfer in 2016 is Thailand’s TCC Holdings takes over Metro Cash & Carry Vietnam (Metro Vietnam).  Similar to the case of the Central Group and Big C Vietnam, this acquisition also aimed at one of the leading retail chain in Vietnam and this acquisition also was implemented by Thais

Metro Vietnam now has 19 supermarkets, the current business situation as positive and were good with more than 500 million Euros in the period 2014-2015

After buying Metro Vietnam, TCC Holdings renamed the Metro Vietnam brand as MM Mega Market and will develop this brand into the wholesale network, not only in Vietnam, but also in Thailand Market. In the future, Thai group has a plan to merge Metro Vietnam and Big C Thailand to promote exports of agricultural, fishery and seafood products between 2 countries

        Besides this supermarket system, TCC Holdings Group also did a range of investment activities for business in Vietnam,  may be mentioned as owning 65% shares of Phu Thai Group - a major enterprise in the field of consumer –goods distribution. Or TCC Holdings Group is now the largest foreign shareholder, owning 11% Vinamilk’s shares (at the beginning of 2016), equivalent to USD 750 million. Moreover, 65% Hanoi Melia Hotel’s shares also belongs to this group

3. Fraser and Neave took over Vinamilk shares

Transferring fees: $500 million

During the mid of December 2016, based on the Vinamilk auction held by state capital investment corporation, 2 companies which were part of Singaporean soft drink giants Fraser&Neave had purchased totally more than 78m shares, equivalent to 5.4% total shares of Vinamilk.

Therefore, the 2 Singaporean companies had raised their Vinamilk shares owned to 237.37 million, which was 16.35% total, becoming the second largest shareholders of Vinamilk, after SCIC (39,33%). Before that, one of two companies is Fraser & Neave Dairy Investments owned approximately 159 million shares, equivalent to 10.95% of Vinamilk's authorized capital.

Remarkably, Fraser&Neave was controlled by Thai business magnate Charoen Sirivadhanabhakdi. He is the chairman of TCC Holdings which acquires Metro Vietnam in the beginning of 2016

According to latest information, Fraser & Neave Dairy Investments continues to register to buy more 21.77 million shares of Vinamilk

4. MobiFone acquired AVG

Transferring fees: $400 million

In May 2016, MobiFone officially announced that MobiFone acquired 95% of stake in

MobiFone-AVG deal got more and more attention from public opinion in September, 2016. The Government Inspectorate has announced a decision to inspect this deal. Although the inspection time was expired, there was no final conclusion until now

Until the Mid of November, 2016, MobiFone’s financial report in 2015 and 6 first months in 2016 has unveiled that the total amount for this acquisition was VND 8.890 billion, equivalent to USD 400 million. Thus, MobiFone bought AVG for 2,58 times higher than the real value of AVG’s shares

Moreover, the MobiFone’s investments in AVG was equivalent to 55% of owners’ equity (equal to VND 16.200 billion) and nearly 40% of the total assets of MobiFone (equal to VND 23.200 billion)

5. AON Holdings’ purchase of Keangnam Landmark Tower

Transferring fee: $350 million

In mid-April, Mirae Asset - Korean stock company with AON - English investment company cooperated to acquire Hanoi Landmark Tower or known as another name – Kangnam Landmark 72. This building is the highest building in Vietnam with the height of 350m

Mirae Assset was founded in 1997, specializing in providing financial, stock and insurance service… in Korea, HongKong, Singapore, India, UK, Vietnam…

In Vietnam, Mirae Asset has received 100% transferred capital at Mirae Asset Wealth Management Stock Joint Company. Recently, this company has been increased capital from 300 billion VND to 700 billion VND. In 2015, the revenue from stock business was 38 billion VND, the after-tax profit was 4,6 billion VND

                                                                                                   (Summarize)

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