FPT, a Vietnam-based technology conglomerate, has sold 47% stake worth US$35 million in FPT Trading Company Limited to Synnex, a global leader in IT Distribution in order to focus on the core fields which are technology and telecommunications.
FPT has announced its divestment from FPT Trading Company Limited, holding the maximum stake of 48 per cent. 47 per cent stake was sold to Synnex, which is ranked the 198th in this year’s Fortune Global 500 list of the world's largest companies, at the price of US$35 million. The divestment could only be implemented successfully when FPT’s minimum valuation is US$80 million. FPT Trading’s staff can buy the maximum of five per cent stake.
This is Synnex’s plan to expand its operation in Southeast Asia, targeting Vietnam, the third largest market after Thailand and Indonesia. The company in Vietnam would be a member of Synnex's global ITC distribution network.
FPT’s divestment of such fields as distribution and retail has been planned for two years as the distribution market of IT products in Vietnam has faced more difficulties. FPT has competed fiercely with giant brands such as the Mobile World (The Gioi Di Dong) and VinPro of Vingroup in the retail market. This divestment would help FPT focus on such core fields as technology and telecommunication.
“FPT is upgrading itself to become a top player in the global IT market,” said FPT’s representative.
Last month, PFT sold 30 per cent stake of FPT Retail to foreign investment funds in Vietnam managed by VinaCapital and Dragon Capital. The corporation is planning to continue selling 10% stake in FPT Retail and expects to list its stock on Hochiminh Stock Exchange in April 2018.
FPT’s fifth office in America was opened in early September, supplying IT services for more than 20 corporations operating in the fields of plane manufacturing, banking, etc.,... In 2016, FPT’s revenue from US market was VND1,003 billion (roughly US$44.2 million). After first 7 months of 2017, FPT’s consolidated revenue and earnings before tax were VND23,587 billion (roughly US$1.04 billion) and VND1,686 billion (roughly US$74.31 million), 13 percent and 19 percent higher than the same period of 2016 respectively. The profit from FPT’s two core fields which are technology and telecommunication accounted for 75 per cent of the corporation’s total profit, with the growth rates being 39 per cent and 16 per cent in turn.
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