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Top 10 M&A deals in 2009

VGP – The number of mergers and acquisitions (M&A) deals in Việt Nam in 2009 was 287, with transactions worth of US $1.09 billion, up 71% against 2008, said PricewaterhouseCoopers.

February 03, 2010 3:52 PM GMT+7

In 2009, 287 M&A cases are conducted for the total value of US $1.09 billion – Illustration photo  

PricewaterhouseCoopers, one of the world's largest professional services firms and the largest of the Big Four auditing firms recently published the Việt Nam M&A Activity Review – 2009.

Here are the most notable deals, announced in Việt Nam in 2009.

1. Viettel - Vinaconex

In February, construction giant Vinaconex Group completed the sale of 35 million of its shares to the State-run Việt Nam Military Telecommunications Corp. (Viettel).

The sale helped Vinaconex raise US $40.1 million and reduced the overall stake in the company held by the State Capital Investment Corporation (SCIC) from 63.36% to 51.35%.

2. HSBC - Bảo Việt

In October 2009, the Ministry of Finance allowed HSBC Insurance (Asia Pacific) Holdings Limited (“HSBC”) sign an agreement to increase its shareholding in Bảo Việt Holdings, Việt Nam's leading insurance and financial services group, to 18% from the current level of 10% for a consideration of US $105.3 million.

A total of 53,682,474 new shares will be issued to HSBC through a private placement to increase HSBC's stake.

M&A activities in 2009 and prospects in 2010

The review holds that comparing the overall M&A statistics across various geographical regions the registered deal values figure for Việt Nam is higher than that of 2008 by 2%.

During 2009, the industrial sector accounted to almost a quarter of all announced M&A deals up from 15% in 2008. The share of deal volumes attributable to the energy and power sector increased from 7% in 2008 to 17% in 2009.

In 2010, PricewaterhouseCoopers forecasts the continued growth in deal activity in all categories.  

On the review, PricewaterhouseCoopers hails the Vietnamese Government for its intention in January to resume the equitization process during 2010 and to take important initiative to consolidate various State-owned enterprises. These moves, according to PricewaterhouseCoopers, may lead to some larger deals in 2010. 

3. Hà Tiên 1-Hà Tiên 2

In December, Hà Tiên 2 (“HT2”) Cement Joint Stock Company agreed to merge with Hà Tiên 1 (“HT1”) Cement Joint Stock Company. Both companies are majority owned by the Việt Nam National Cement Corporation, a Vietnamese state-owned cement producer.

Estimated at US$ 133 million, the merge will enable the combined company to have a better competitive position in the cement manufacturing industry.

4. MOTUL - Vilube

In March, MOTUL Lubricants Group, a French producer and distributor of lubricants, acquired the remaining 70% of the shares of Việt Nam Lubricants and Chemicals Joint Stock Corporation (Vilube). MOTUL Lubricants had acquired a 30% stake in Vilube in December 2006.

5. Lotte và Coralis

This was the deal transferring a high-grade apartment-office-five star hotel project, Hà Nội City Complex, which Korean Lotte purchased from the Deawoo group. The project was restarted on October 22 after four months of interruption.

6. Eland - Thành Công

In a privately negotiated transaction in May, Singapore Eland Asia Holdings Pte Ltd (Eland), a unit of EL International Ltd of the Republic of Korea, acquired a 30% stake, or 10.365 million new ordinary shares, in Thành Công Textile Garment Investment Trading JSC, a Hồ Chí Minh City-based manufacturer of textile products, for a total value of US $5.9 million.

Eland also announced its intention at some point to raise its share further to 40.36% for an additional consideration of US $3.4 million.

PricewaterhouseCoopers is convinced that 2010 will witness continuing growth in the number of M&A deals in all categories - Illustration photo

7. Pomina – Viet Steel

Pomina issued 80 million shares to existing shareholders of Viet Steel in exchange for the latter’s shares.With the issuance, the chartered capital of Pomina has increased from VND 820 billion to VND 1,720 billion.

8. Sab Miller - Vinamilk

In March, SABMiller Asia BV (SA), a wholly-owned unit of SABMiller PLC, acquired the remaining 50% of shares in SABMiller Việt Nam JV Co. Ltd, a beer producer and wholesaler, from its joint venture partner Việt Nam Dairy Products Joint Stock Co (Vinamilk).

9. ICP - Thuận Phát Foodstuff Joint Stock Company

In June, International Consumer Products Corp. (ICP) officially became the majority owner of Thuận Phát Foodstuff Joint Stock Company (Thuận Phát) after taking a 51% stake in this company. Thuận Phát will be able to leverage off ICP’s large distribution system in order to expand its market share. In addition, ICP will support Thuận Phát to develop a modern management system, improve professional marketing and selling skills, and reinforce highly-qualified human resources.

10. BIDV - PIB Cambodia

IDCC, a company established by the Bank for Investment and Development of Việt Nam (BIDV) and Phương Nam Company, purchased PIB, a Cambodian private bank, and planned to rename the bank as BIDV Cambodia (BIDC). BIDC plans to have the total asset of US $303 million by 2012.

Hương Giang