Over the past three years, the wave of equitization of State-owned enterprises (SOE) has enabled many private corporations to purchase shares and own leading firms.
If T&T Group owned by Do Quang Hien is deemed as the main investor in Vinafood 2’s share auction taking place on this March 14, Vinamco is the only firm that is qualified to be Hapro’s strategic investor in Hapro’s share auction at the end of this March.
According to the equitisation plan, Hapro has the chartered capital of VND2.2 trillion (roughly US$96.98 million) which is equivalent to the value of 200 million outstanding shares. Hapro will sell 75.93 million equivalent to 34.51 per cent of charter capital via IPO (initial public offering) with the starting price of VND12,800 (roughly US$0.56) per share. Meanwhile, 143 million shares or 65 per cent of charter capital will be sold to strategic investors.
The price of shares offered for strategic investors will not be lower than the lowest successfully auctioned price in the IPO. Therefore, Vinamco must spend a minimum of VND1.83 trillion (US$80.5 million) for this deal.
Previously, Vinamco paid VND1.25 trillion (US$55 million) on purchasing a 97.7 per cent stake in Vietnam Motors Industry Corporation - Joint Stock Company (Vinamotor) from the Ministry of Transport and is now a strategic shareholder of Hanoi Trading Service Fashion Join stock Company (Hafasco), etc.
BRG Group is known as investor of big leisure projects such as Hilton Hanoi Hotel, Dong Mo Golf Course, Do Son Golf Course ... Participating in many large IPOs, BRG has become strategic shareholders of Thang Long GTC, OSC Vietnam, Print Jsc...
BRG’s participation in Hapro's equitization is understandable as many of business lines of Hapro are relevant to BRG’s investment sectors.
Hapro, which is an SOE directly under the Hanoi People's Committee, has the business lines including import-export business, domestic trade and investment in commercial infrastructure. It is one of the firms leading the export of some agricultural products and food with export turnover of nearly 2.5 trillion (US$110 million) a year.
In the field of domestic trade, Hapro has developed a system of supermarket, convenience store with HaproMart brand, HaproFood-branded food safety stores... In particular, Hapro is also managing and using 120 nationwide houses and land lots located in prime locations in Hanoi and Ho Chi Minh city.
Previously, BRG was involved in Intimex Viet Nam JSC which has similar business lines like Hapro. Intimex is trading supermarkets, seafood aquaculture and processing and real estate with the huge land fund.
Then, when the State Capital Investment Corporation (SCIC) divested at Intimex, BRG's member company, King Valley Co., Ltd. purchased shares to increase BRG’s shareholding in Intimex to over 45 per cent.