Top ten M&A news in 2009

287 merger and acquisition (M&A) affairs were wrapped up in 2009 with a value of $1.09 billion. The figures represent a 71 percent increase in the number, but a slight decrease in the value, according to Avalue Vietnam, a finance consultancy service provider.

Avalue Vietnam believes that 2010 will witness a sharp increase in the number of M&A cases with a stable increase in the value of the deals.

Here are the 10 most outstanding M&A affairs of 2009 cited by Avalue Vietnam in its report released at the end of January 2010.

Viettel-Vinaconex

Viettel, a well known Military Telecom Company, wrapped up a deal buying 35 million stocks of Vinaconex (the Vietnam Construction and Import-Export Corporation) in February after it wrapped up another deal – becoming the strategic partner of Military Bank. The transaction was carried out when the stock market was at its lowest point.

With the transaction, Viettel is now holding 18.9 percent of Vinaconex’s stakes and it revealed plans to purchase more stakes in the corporation. Also in 2009, Viettel and Vinaconex also established the Vinaconex-Viettel Finance Joint Stock Company.

HSBC-Bao Viet

In November 2009, the Ministry of Finance gave the nod to allow HSBC to raise the ownership ratio in Bao Viet finance group by another eight percent to 18 percent. The value of the contract was 1.88 trillion dong, or 105.3 million dollar

Le Quang Binh, chairman of Bao Viet Group, said the higher HSBC’s ownership ratio in Bao Viet the higher the strength of the enterprise. The move also proves HSBC’s commitment to become the most important strategic shareholder of Bao Viet.

Ha Tien 1- Ha Tien 2

The plan to merge Ha Tien 1 and Ha Tien 2 Cement Factories was approved at the extraordinary shareholders’ meeting on December 29, 2009.

With the deal, Ha Tien has become the biggest cement company in Vietnam which lists shares on the HCM City Stock Exchange with a market capitalization value of nearly 2,800 billion dong.

Motul-Vilube

French lubricant Motul successfully purchased a 70 percent stake in Vilube. Prior to that, Motul held 30 percent of stakes in Vilube after it purchased them in December 2006.

Motul said that it would make investment to upgrade technologies at the current Vilube factory in Hiep Phuoc in HCM City.  It plans to turn the factory into the main production base for Motul which will provide products to Asia Pacific.

Lotte and Coralis

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

The complex is located on the advantageous position on Lieu Giai Road in Hanoi. Capitalized at 400 million dollar, it is expected to become the second tallest building in Vietnam (65 storeys), after Keangnam.

Eland-Thanh Cong

Singaporean Eland Asia Holdings Pte Ltd purchased 30 percent of stakes of Vietnamese Thanh Cong Garment Company at 10,000 dong per share. The deal is worth 5.9 million dollar.

Eland has also revealed the intention to raise the ownership ratio in Thanh Cong Company to 40.36 percent

Pomina-Viet Steel

Pomina issued 80 million shares to existing shareholders of Viet Steel in exchange for Viet Steel shares (shareholders that had one share of Viet Steel would get one share of Pomina)

With the share issuance, the chartered capital of Pomina has increased from 820 billion dong to 1,720 billion dong.

Sab Miller- Vinamilk’s brewery joint venture

BV (SA), owned by SABMiller PLC, purchased a 50 percent stake in SABMiller Vietnam joint venture, a brewery company, from its partner in the joint venture – Vinamilk.

SABMiller said that the move will allow the company to expand its business and develop Vietnam’s brewery market

ICP-Thuan Phat

International Consumer Products (ICP) has officially become the main owner of Thuan Phat Food Company by taking a 51 percent stake in the company.

Thuan Phat was established 27 years ago, specializing in making fish sauce products, spices and sour vegetables for domestic consumption and export.

BIDV-PIB Cambodia

IDCC, a company established by Vietnamese Bank for Investment and Development of Vietnam (BIDV) and Phuong Nam Company, purchased PIB, a Cambodian private bank, and planned to rename the bank as BIDV Cambodia (BIDC)

BIDC plans to aims to have total assets of 303 million dollar by 2012.

VietNamNet/TBKTVN

Tags: M&A in Vietnam, Vietnam business news, Vietnam M&A