Vinaconex becomes a member of An Quy Hung

By Tran Anh - Dec 20, 2018 | 04:10 PM GMT+7

TheLEADERAn Quy Hung Company Limited has paid the State Capital Investment Corporation, the previous owner of Vinaconex, over $316 million to acquire nearly 58 per cent of Vinaconex’s shares.

Vinaconex becomes a member of An Quy Hung
An Quy Hung spent $316 million to acquire a 58-per cent stake in Vinaconex

According to the State Capital Investment Corporation (SCIC)’s announcement, the investor has made full payment to acquire Vinaconex’s shares (stock code: VCG) and the auction was successful. The proceeds Government has obtained from this divestment is 35 per cent higher than the starting price. 

The thing that investor has made full payment to the deal has cleared doubts about SCIC's ability to re-bid because the awarded bidder is a private company with limited financial capacity.

Accordingly, An Quy Hung spent VND7.366 trillion ($316 million) to purchase 255 million VCG shares held by SCIC in the auction on November 22. Before the auction, An Quy Hung deposited VND543 billion ($23.3 million).

According to a source, after the auction, An Quy Hung had to mortgage numerous land plots in Geleximco - Le Trong Tan new urban area at Indovina bank’s Thien Long branch.

These land plots are under sales contract entered between An Quy Hung and Geleximco Group with the total value of VND250 billion ($10.7 million). However, this amount represented a small proportion of nearly $300 million that An Quy Hung had to mobilize.

The private company is well-known in the field of industrial construction, headed by Nguyen Xuan Dong and his wife Do Thi Thanh.

Dong was a member of Board of Directors of Vimeco, a member company of Vinaconex until April 2017. An Quy Hung had owned a 30-per cent stake in Vimeco, but then completely withdrawn its capital in late 2016. Dong is also a member of the Board of Directors of Hai Phat, a newly-listed real estate company on the stock exchange.

Vinaconex becomes a member of An Quy Hung
Nguyen Xuan Dong, Chairman of An Quy Hung

It is said that An Quy Hung had nearly 60 large and small projects for domestic and foreign partners, of which nearly 50 ones have foreign direct investment.

In addition to construction, An Quy Hung is also involved in real estate projects with the role of brokerage and investment cooperation through An Quy Hung Land and cooperated with other real estate investors such as Van Phu Invest.

In 2015, the company successfully auctioned 3,400 square meters of land in Thuong Thanh ward, Long Bien district, Hanoi to develop low-rise and high-rise residential project. Last year, the company was allocated more than 2,000 square meters of land in this area to build the Thuong Thanh residential area.

Over the past two years, An Quy Hung has continuously increased capital. By the end of 2017, its charter capital was over $19 million and total capital reached nearly $43 million.

Vinaconex is a state-owned enterprise with a 30-year history of equitization. The company has built large projects nationwide such as the National Convention Center and Trang Tien Plaza. In addition, Vinaconex has developed many large-scale real estate projects such as Trung Hoa Nhan Chinh urban area and infrastructure projects.

In addition to its strength in construction, it is the millions of square meters of land plots owned or managed by the Vinaconex and its subsidiaries that attract investors.

One of Vinaconex's valuable assets is a 50-per cent stake in Bac An Khanh urban area project (Splendora project). This project which covers an area of 265ha is located on Lang - Hoa Lac expressway with planned 6,440 apartments, 1,311 villas and attached houses. Earlier this year, Phu Long Real Estate Company acquired a 50-per cent stake in the project from its foreign partner Posco E&C.

The company holds a 30-per cent stake in Cam Pha Cement Plant. It was once a crippling burden for Vinaconex in the past. By the end of 2013, Vinaconex sold 70 per cent of shares to Viettel and lent $90 million to Cam Pha Cement. Under the management of Viettel, Cam Pha Cement started to earn a profit. As a result, the cement company started to repay the mentioned loan in 2016.

Vinaconex is also renovating two old condominium projects on Lang Ha Street with a total investment capital of VND1.5 trillion ($64.4 million). At the same time, the company is implementing two other condominium projects at 25 Nguyen Huy Tuong and Vinata Towers.

Before SCIC’s divestment, Vinaconex restructured its operations with a focus on real estate construction and trading and infrastructure development. Vinaconex divested from and reduced its shareholding in many of its member companies.