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Vietnam Newsletter - August 2023




Market Summary


  • This month, M&A activity in Vietnam is showing a resurgence with numerous significant deals across sectors. The total transaction value reached USD0.5bn, predominantly driven by Technology (USD171m), Healthcare (USD36m), and Energy and Utilities (USD84m).

  • Technology grabbed the spotlight as Vietnam's internet company, VNG Corp (VNZ.HNO), is targeting to raise USD150m through a U.S. stock market listing, aiming for a trading debut either in late September or October.

  • Healthcare continued to be a trending sector, marked by the M&A transaction between Dongwha Pharm and one of Vietnam's leading pharmacy chains, Trung Son Pharma.

  • The Energy & Utilities sector witnessed a landmark deal when Big Energy Joint Stock Company signed a Sale and Purchase Agreement to acquire a 53.1% stake in Block 12W for USD84m.


Aggregate Deals Value = USD509m

 

This month's top deals


Healthcare

Dongwha Pharm announced the acquisition of a 51% stake in Trung Son Pharma for USD30 million

Trung Son Pharma operates over 140 pharmacies, predominantly in the southern region, with the most significant presence of 45 stores in Can Tho city. The company reported revenues of USD56.5 million last year, derived from the sales of prescription and non-prescription medications, functional foods, cosmetics, and medical equipment. This acquisition offers Dongwha Pharm an avenue into the Vietnamese market for over-the-counter medications. The company also intends to introduce cosmetics and health-beneficial functional foods.


Article link:

Dongwha Pharm announced the acquisition of a 51% stake in Trung Son Pharma for USD30 million

Thai Nguyen International Hospital approved to do public offerings of USD6.3 million

Financial Services

Tien Phong Securities Corporation plan for share issuance to existing shareholders to increase its charter capital

Approve the plan for share issuance to existing shareholders to increase its charter capital to USD130 million.

The company is issuing shares through rights offering with 2:1 exercise ratio.


Article link: Tien Phong Securities Corporation plan for share issuance to existing shareholders to increase its charter capital

Technology

VNG Corp is targeting to raise USD150 million through a U.S. stock market listing

VNG filed earlier for an initial public offering (IPO) on the Nasdaq via VNG Ltd, a U.S. Securities and Exchange Commission filing showed. It is targeting a trading debut at end-September or October.

Citigroup, Morgan Stanley, UBS, and Bank of America are underwriters of the IPO, according to the filing.


Article link:

VNG Corp is targeting to raise USD150 million through a U.S. stock market listing

Telio Vietnam received USD15 million funding from Granite Oak

MFast has raised USD6 million in a new round of funding

Energy & Utilities

Big Energy Joint Stock Company to acquire Block 12W for USD84 million

Big Energy Joint Stock Company entered into Sale and Purchase Agreement to acquire 53.125% stake in Block 12W from Premier Oil Vietnam Offshore BV and Premier Oil (Vietnam) Ltd for USD84 million on August 10, 2023. Transaction is subject to government approval. Completion is targeted by year end 2023. Jefferies acted as the sole financial advisor to Harbour in the transaction.


Article link:

Big Energy Joint Stock Company to acquire Block 12W for USD84 million


Transporation and Logistics

Vietnam Container Shipping JSC approved to do public offerings of USD55.9 million

The proceeds will be utilized to acquire up to 44% of the target company, which is Nam Hai Dinh Vu Port, and to finance short-term working capital.


Article link:

Vietnam Container Shipping JSC approved to do public offerings of USD55.9 million

Others

Advance Tyre (Vietnam) Co., Ltd. announced that it will receive USD58 million in a round of funding

Advance Tyre (Vietnam) Co., Ltd. announced that it will receive USD58 million in a round of funding on August 18, 2023. The transaction will include participation from returning investor, Guizhou Advance Tyre Investment Co., Ltd. Through the transaction, the company's registered capital will increase from USD77.5 million to USD135.6 million.


Article link:

Advance Tyre (Vietnam) Co., Ltd. announced that it will receive USD58 million in a round of funding


Lotes Viet Nam Company Limited announced a private placement of common shares for the gross proceeds of USD44 million


Note: Deal values include disclosed announced & closed deals with amounts restricted to the local scene i.e., amounts related to the Vietnam entity and/or business. Rumored deals are not included. Cross-posted deals are also adjusted to avoid double count.

Exchange rate: USD1.00 = VND23,310.00 as of August 31, 2023.

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