Vingroup sells 41.5% of its stake in retail unit

VINGROUP has sold 41.5 per cent of its stake in its retail unit, Vincom Retail, to an undisclosed partner for an undisclosed sum, according to the company’s filing to authorities.

After the transaction, Vingroup holds an 18.8 per cent stake in Vincom Retail, but the shopping mall operator is no longer a Vingroup unit. The transaction is expected to conclude between this month and the third quarter of this year.

The stake was worth almost US$1 billion on Monday (Mar 18), according to LSEG data, making it one of the largest merger and acquisition transactions in Vietnam in recent years.

The sale confirms a Reuters report in March last year that Vingroup was in discussions to sell its stake in Vincom.

The deal comes as Vingroup, whose businesses are spread across the real estate, resorts and automobiles sectors, is investing billions of dollars to develop loss-making VinFast, its fledgling electric-vehicle maker, and expand in the United States and other 50 markets.

Vincom Retail owns 83 shopping malls in Vietnam – a country that grew 5 per cent last year and emerged as Asia’s fastest growing economy. The company’s shares have gained 9.4 per cent so far this year. REUTERS

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