Mobile World has just sent a letter to the State Securities Commission of Vietnam (SSC) and The Hanoi Stock Exchange (HNX) to purchase 1.2 million shares of Tran Anh.
If the transaction is successful, Mobile World’s shareholding will be increased from over 23 million shares to 24.81 million shares, equivalent to a 100 per cent stake in Tran Anh.
The transaction will be performed following order matching or negotiation at the price of VND34,900 (US$1.54) per share from January 12 to February 02, 2018. It is expected that Mobile World will spend about VND41.9 billion (US$1.8 million) on this deal.
In a few days ago, Mobile World received a 95.2 per cent transferred stake in Tran Anh from Tran Anh's majority shareholders. In return, Mobile World offered nearly 6.2 million shares in a private placement to Tran Anh's majority shareholders including former Chairman Tran Xuan Kien’s family and Japanese shareholder Nojima.
According to the list recently announced and the number of shares Tran Anh offered for sale before, an MWG share is equal to 3.82 TAG shares.
At the announced price of VND93,300 (US$ 4.11) per share, the total value of MWG shares in the private placement to 9 shareholders of Tran Anh was estimated at VND576.7 billion (US$25.4 million). Accordingly, the price of a TAG share was about VND24,400 (US$ 1.08).
The most remarkable M&A deal in Vietnam’s electronics market from the second half of 2017 is closing.
According to Mobile World, all the transfer process has been basically completed and the operation of Tran Anh’s supermarkets has been conducted by Mobile World’s staffs since October 2017.
Speaking to local media VnEconomy, Kien revealed the reasons for selling Tran Anh after 15 years of establishment and development are “the unprofitable electronics market in the future" and the strong development of e-commerce.
Reportedly, Mobile World’s Board of Directors has approved the business plan in 2018 with revenues expected to reach VND86,390 billion (US$3.8 billion), up 36.5 per cent over the plan in 2017 and after-tax profit expected to reach VND2.603 billion (US$114.8 million), up 18.3 per cent over with the 2017 plan.