US investment firm to reduce stake in Vinhomes

KKR-backed Viking Asia Holdings II fund will complete the transaction between August 19 and September 17.

The deal is estimated to be worth around VND3.7 trillion ($161.9 million) on current prices.

Viking Asia acquired the Vinhomes stake in June 2020 when VHM was trading at VND70,000. It has risen by 64 percent since.

Vinhomes ticker VHM. Photo courtesy of TradingView.

Vinhomes’ parent company, Vingroup, is also planning to sell a 3 percent stake in it at around the same time for VND12 trillion.

Vingroup will own 66.66 percent of Vinhomes after the deal.

The Government of Singapore Private Ltd owns a 5.74 percent stake in Vinhomes.

VHM has fallen by 4.5 percent since Monday when the announcements about the stake sales were made.

Vinhomes reported revenues of VND41.7 trillion for the first half, up 82 percent year-on-year.

The company has undistributed profits of nearly VND67 trillion, twice its charter capital.