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Vietnamese Telecommunications Firm FPT Sells 30% of its FRT Subsidiary to Dragon Capital, VinaCapital.

MANews-(C)2009-2017

11 August 2017 - Vietnamese telecommunications company FPT Corp has completed transferring 30% of its FPT Digital Retail JSC (FPT Retail)'s subsidiary's charter capital, which is equivalent to 6m shares, to funds managed under and associated with Dragon Capital and VinaCapital, the company said on Friday.

FPT Retail is currently the second largest retailer in Vietnam. Terms of the deal were not disclosed.

Until July 2017, FPT Retail operated 438 stores nationwide. With revenue of USD 15,717 per square meter, FPT Retail is the most effective retailer, according to Euromonitor and Retail Asia Publishing.

Dragon Capital and VinaCapital are the largest foreign financial investors in Vietnam, having USD 2.1bn and USD 1.8bn of assets under management, respectively.

In 2017, FPT Retail set target of achieving a 27.5% and 40% growth in terms of revenue and profit before tax, respectively, from both same store sale growth and from new stores opening in such areas where smartphone penetration is low.

E-commerce and omni-channel approach will also be used in delivering the business targets.

In the first six months of 2017, FPT Retail delivered revenue of VND 6,193bn, up 31% year over year, and profit before tax of VND 141bn, up 44% year over year.

Compounded annual growth rates of revenue and profit before tax, respectively, of FPT Retail is expected to be over 25% and 35% per annum during the 2016 2019 period.

Dragon Capital has USD 2.1bn of assets under management. The firm targets listed, to-be-listed, equitization/IPO enterprises, especially those that are active, professional and innovative in managing their business, which are operating in growing sectors.

Dragon Capital assists Vietnamese enterprises in continuously improving their business administration and corporate governance, in order to add value to employees, investors and to the public.

VinaCapital has USD 1.8bn of asset under management, which focuses on investing in companies that are serving Vietnamese consumers, using Vietnamese human resources, and founded by Vietnamese.

Country: Vietnam

Sector: Telecommunications

Target: FPT Digital Retail JSC (FPT Retail)/30% stake

Buyer: Dragon Capital and VinaCapital

Vendor: FPT Corp

Deal size in USD:

Type: Divestment

Financing:

Status: Closed

Buyer advisor: , ,

Comment: Terms of the deal were not disclosed

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Publication:M & A Navigator
Date:Aug 11, 2017
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