Regarding investment deal, the most prominent are the one between KEB Hana Bank and BIDV worth $878 million, and the purchase of Vinhomes’ shares worth $652 million by KKR & Temasek.
Meanwhile, the most prominent mergers and acquisitions in 2019-2020 involved private Vietnamese groups, typically Masan, Thaco, Gelex, and Vinamilk.
Topping the list are the deals between Masan as well as its affiliates and VinCommerce, Starck, NET, and 3F.
Masan’s acquisition of VinCommerce (VinMart, VinMart +) from Vingroup was one of the most noticeable deals at the end of 2019. The deal stemmed from Vingroup's business restructuring strategy. The deal's value was estimated at about VND5,400 billion.
After being acquired, the VinCommerce system was comprehensively restructured. In the first 6 months of 2020, Masan closed 151 inefficient VinMart supermarkets and convenience stores, and at the same time, opened 45 new stores. Eighty percent of the closed stores are located in Ho Chi Minh City and provincial cities. Most recently, Masan informed that it would change the brand name from VinMart to WinMart, and VinMart + to WinMart +, however, the new logo and identity have not yet been revealed.
In addition, Masan also spent nearly VND650 billion to acquire Net Detergent Joint -Stock Company (NETCO). A member company of this Group has publicly offered to buy 60% shares of NETCO for VND48,000 per share.
In 2020, Masan also completed the acquisition of H.C. Starck Group GmbH (HCS)'s tungsten business platform, a leading manufacturer of high-tech tungsten products.
Most recently, Masan MEATLife Company announced that it would pour VND613 billion to own a 51% stake in 3F Viet Food, which is the leading company in poultry products in Vietnam, to penetrate the poultry market.
BIDV's sale of capital to foreign strategic shareholder KEB Hana Bank (South Korea) is the biggest M&A deal in 2019. After a long negotiation period, the deal was finally reached when BIDV issued more than 603 million shares, equivalent to 15% of charter capital to KEB Hana.
At the price of VND33,640 VND per share, the total value of the deal was VND20,295 billion, equivalent to about $878 million.
After this deal, BIDV became the bank with the highest charter capital in Vietnam, and initially “quenched the thirst for capital”.
According to Vingroup, a group of investors led by KKR, including Temasek (KKR Investor Group), invested a total of VND15,100 billion (equivalent to $650 million), in exchange for about 6% shares of Vinhomes.
After the transaction, Vingroup Group is still the controlling shareholder of Vinhomes.
At the end of March, Stark Corporation (Thailand) said that it had successfully completed the acquisition of shares in two Vietnamese enterprises including Thinh Phat Cable Joint Stock Company (Thipha Cable) and Dong Viet Non-Ferrous Metal and Plastic Joint Stock Company (Dovina).
Thipha Cable and Dovina are two large electric cable manufacturers in Ho Chi Minh City founded by Mr. Vo Tan Thinh in 1987.
The acquisition of Thipha Cable and Dovina had been planned by Stark long before. The deal was reached at the end of last year with the total value of the share purchase not exceeding $240 million (VND5,560 billion).
This deal was completed at the end of 2019 when Bao Viet Group sold 41.4 million shares to its partner Sumitomo Life (Japan) for VND96,817 per share, nearly 31% higher than the price of shares traded at that time (closing price on December 18 was VND74,000 dong per share).
Accordingly, this foreign investor spent VND4,012 billion (equivalent to USD173 million) to increase its ownership in Bao Viet to 22.09%. After this additional issuance, Bao Viet Group’s total charter capital was increased to VND7,423 billion.
Danh Khoi Holdings Investment Joint Stock Company transferred a part of the residential project in the East of Thu Luu canal in Long Toan Ward, Ba Ria City to Netland Real Estate Joint Stock Company.
According to Ba Ria – Vung Tau’s Department of Construction, the project has an area of about 87,389.5 m2, and the total construction floor area is about 190,881 m2.
The value of the deal has not been disclosed.
On June 17, 2020, the State Bank of Vietnam accepted the purchase of shares in Orient Commercial Joint Stock Bank (OCB) by AOZ. After this deal, AOZ became a foreign shareholder owning 15% of charter capital.
In particular, OCB successfully issued and sold 86.68 million shares to Aozora Bank (Japan) under the strategic cooperation agreement between the two banks.
The two banks signed a strategic cooperation agreement in which AOZ committed to long-term investment at OCB by sending experts to participate in management and administration activities, support business development, etc. At the same time, this association provides financial services to Japanese companies operating in the Vietnamese market.
The value of the deal is over VND3,200 billion.
In April, FWD Group (FWD) said it had been approved the acquisition of Vietcombank-Cardif Life Insurance Company(VCLI), which a life insurance joint venture between the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) and BNP Paribas Cardif.
The acquisition is part of an agreement between Vietcombank and FWD in a 15-year exclusive insurance distribution contract.
The value of the deal was not announced by the two parties during the signing ceremony. However, previously, Bloomberg had cited a source indicating that Vietcombank might receive an initial payment of about $400 million. If including the cost of the insurance distribution commissions for 15 years, the figure could reach $1 billion.
In February 2020, Pharmacity announced the successful capital raising of VND730 billion (equivalent to $31.8 million) from Series C. There has been no detailed information about the capital contribution deals to this company.
Pharmacity Pharmaceutical Joint Stock Company was established in 2012. It currently has a charter capital of over VND300 billion. The company provides pharmaceuticals, oriental medicine, functional foods, health and beauty care products, vitamin and mineral supplements, and home grocery.
The founder and CEO of the company is Mr. Chris Blank, an American pharmacist who has worked in Vietnam for many years.
The M&A deal between Vinamilk and GTNFoods started in March 2019 when Vinamilk suddenly offered to buy more than 116.7 million shares of GTN, equivalent to 46.68% of GTNFoods' capital, with an estimated amount of VND1,517 billion.
At the end of 2019, the deal was reached when the extraordinary general meeting of shareholders of GTNFoods approved allowing Vietnam Dairy Products Joint Stock Company (Vinamilk) to own 75% of the charter capital without a public tender offer.
In 2020, Vinamilk and GTNFoods became strategic shareholders of Mocchau Dairy Cattle Breeding Joint Stock Company (Moc Chau Milk) after buying more than 39 million shares of the company.