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South Korean SK Group a major Vingroup shareholder

By Minh Son   May 28, 2019 | 04:46 am PT
South Korean SK Group a major Vingroup shareholder
The logo of SK Innovation is seen in front of its headquarters in Seoul, South Korea. Photo by REUTERS/Kim Hong-Ji
SK Group has spent nearly $1 billion on a 6.15 percent stake in Vingroup, Vietnam’s biggest private conglomerate.

The Ho Chi Minh City Stock Exchange (HoSE) announced Tuesday afternoon that 205.7 million VIC shares of Vingroup were bought by SK Investment Vina II – a subsidiary of the SK Group, on May 21.

With a 6.15 percent stake in Vingroup, SK Group has become a major shareholder under Vietnamese law, a status conferred on a shareholder directly or indirectly owning at least 5 percent of voting shares.

The transaction happened five days after Vingroup and SK Group signed a strategic cooperation agreement.

According to the agreement, SK Group would spend VND23.3 trillion ($996 million) on 154.3 million newly issued shares and 5.14 million VIC shares owned by VinCommerce, Vingroup’s retail arm. All shares would be bought at a fixed price of VND113,000 ($4.83) per share.

With this transaction, Vingroup has almost completed its plan to raise at least VND25 trillion ($1.08 billion) through private placements to foreign investors, a move approved by shareholders in March.

The conglomerate wanted to offer 250 million shares, which are equivalent to 7.8 percent of all outstanding VIC shares, to a maximum of five investors, at a price not lower than VND100,000 ($4.27) per share.

The group plans to use VND10 trillion ($427 million) of the proceeds to restructure its debts, VND6 trillion ($256 million) to invest in its auto company VinFast, technology firm VinTech and smartphone maker Vinsmart.

On the stock exchange, VIC shares are currently trading for VND115,000 ($4.92), nearly 2 percent higher than the offering price for strategic shareholders.

Originally a real estate firm, Vingroup has expanded into manufacturing, education, healthcare, retail, and pharmaceuticals.

VIC currently has the highest market cap in the Vietnamese stock market.

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