Vietnam M&A Bounces Back in H1 2024
In the first half of 2024, Vietnam's M&A landscape has surged with deals totaling $3.5 billion, marking an 80% increase year-to-date, and 21% increase compared to the first half of 2023.
Key transactions include Warburge Pincus’ investment in the Xuyen A General Hospital System, KKR's stake in Medical Saigon Group, and Coteccons Construction's strategic acquisitions. Bamboo Capital Group entered waste-to-power with Tâm Sinh Nghĩa, while Masan High-Tech Materials acquired H.C. Starck Holding for $134.5 million. FPT Corporation's buyout of Japan's Next Advanced Communications underscores Vietnam's tech ambitions.
These moves showcase Vietnam's economic growth and innovation driven by dynamic M&A activity.
Here are some noteworthy highlights:
1. Warburg Pincus invests in Xuyen A General Hospital System
On April 15, Warburg Pincus, which has invested a total of USD 2 billion in Vietnam, announced an investment in the Xuyen A General Hospital System. The two parties signed a joint venture agreement, with the specific investment amount not disclosed. This marks Warburg Pincus's significant entry into Vietnam's healthcare sector.
Xuyen A General Hospital Investment Joint Stock Company, established in 2012, began operations in May 2014. It is one of the largest private general hospital systems in Southern Vietnam, with four hospitals in Ho Chi Minh City, Vinh Long, Long An, and Tay Ninh. Each hospital can expand to accommodate up to 1,000 inpatient beds and offers 20 specialties.
The funds from Warburg Pincus would help Xuyen A General Hospital expand the scale of investment, improve the quality of the medical team, and enhance patient care.
2. KKR has acquired a majority stake in Medical Saigon Group (MSG)
On January 19, KKR became the largest shareholder of Medical Saigon Group, taking over from Singapore's investment firm Heliconia Capital, a wholly-owned unit of Temasek Holdings, Singapore's state investment firm. Heliconia acquired Medical Saigon Group in 2019.
Medical Saigon Group was founded in 2004 by ophthalmologist Dr. Thai Thanh Nam. It began with a facility on Le Thi Rieng street, celebrated as Vietnam's first non-public ophthalmic hospital to utilize advanced techniques and provide international standard medical quality at that time. The Saigon ophthalmic brand has since expanded to multiple locations, including Hanoi, Nha Trang, Ha Tinh, Can Tho, and Vinh. Today, Medical Saigon Group is one of the largest hospital chains in Vietnam.
3. Alina Vision secures equity investment from TVM Capital Healthcare
Vietnamese ophthalmic clinic Alina Vision has secured a significant equity investment from Singapore's TVM Capital Healthcare to accelerate its growth plans. TVM Capital Healthcare's investment in Alina Vision, announced on January 16, involves a growth-buyout transaction with The Fred Hollows Foundation from Australia and Rohto Pharmaceutical of Japan.
Founded in 2018 by The Fred Hollows Foundation, Alina Vision has expanded with support from Rohto Pharmaceutical, growing to over 80 employees across two ophthalmic hospitals. TVM Capital Healthcare specializes in healthcare investments across emerging markets, focusing on specialized healthcare services, digital health solutions, pharmaceuticals, medical devices, and diagnostics.
4. ASKA Pharmaceutical raises ownership in Ha Tay Pharmaceutical to nearly 33 per cent
ASKA Pharmaceutical Co., Ltd. has increased its stake in Ha Tay Pharmaceutical JSC (Hataphar) to 32.6% through a private placement.
On December 25, Hataphar completed the sale of 8.4 million shares to ASKA Pharmaceutical, raising its charter capital to VND 877 billion ($37 million) at a price of VND 21,500 (91 US cents) per share, totaling about VND 180.6 billion ($7.6 million). This transaction increased ASKA Pharmaceutical's ownership in Hataphar from 24.9% to 32.6%, totaling 25.8 million shares, which are restricted from transfer for three years.
Hataphar plans to use over VND 78.4 billion ($3.3 million) for its High-tech Pharmaceutical Manufacturing factory and VND 102.2 billion ($4.3 million) to restructure bank debts.
5. Mynavi Corporation makes new investment in WeCare 247
Mynavi Corporation announced on May 28 that it has invested an undisclosed sum in WeCare 247 JSC, a company that offers a matching service for caregivers and care recipients in Vietnam.
In addition to matching caregivers with care recipients, WeCare 247 also supports the retention of caregivers by training them to provide quality services and offering benefits such as rest facilities and refreshments.
By investing in and supporting the growth of WeCare 247, Mynavi aims to solve one of Vietnam’s social issues and improve people’s quality of life.
Photo: Reuters
6. FPT announces its full acquisition of Next Advanced Communications (NAC) - Japan
FPT Corporation (FPT) has acquired the IT services company Next Advanced Communications NAC Co., Ltd. (NAC), marking FPT's first merger and acquisition (M&A) deal in Japan. With NAC now a wholly-owned subsidiary, FPT aims to double its customer base and service offerings, strengthening its presence in the Japanese market.
This strategic move aligns with FPT’s global expansion strategy, allowing the Vietnamese company to leverage NAC’s talent pool of nearly 300 experienced engineers and its strong expertise in technology and business consulting, architecture design, system planning, design, development, and operation. With these added resources, FPT aims to achieve one billion USD in revenue from the Japanese market by 2027 and ensure that more than half of its employees in Japan are multinational.
7. Coteccons acquires 100% of Sinh Nam Metal and UG Mechanical and Electrical
February 9, Coteccons Construction JSC, listed on the Ho Chi Minh Stock Exchange (HoSE) as CTD, announced the completion of procedures to acquire 100% of two companies, Sinh Nam Metal (Vietnam) Co., Ltd. and UG Mechanical and Electrical (Vietnam) Co., Ltd.
This move aligns with Coteccons' strategy to diversify revenue sources within the construction sector, focusing on public investment, infrastructure, and social housing.
8. Bamboo Capital’s acquisition of waste treatment firm marks entry in waste-to-power sector
On January 31, BCG Energy Corporation, a member of the Bamboo Capital Group (BCG), announced that it had signed a principal agreement to purchase shares with Tâm Sinh Nghĩa Investment and Development Corporation. Consequently, this company has become a member of the group's ecosystem.
Tâm Sinh Nghĩa operates in the form of waste treatment, sorting, and incineration plants in Ho Chi Minh City, Long An, and Kiên Giang. Following the merger, BCG Energy will build two waste-to-energy incineration plants for Tâm Sinh Nghĩa in Ho Chi Minh City and Long An.
9. Mitsubishi Materials Corporation spends $134.5 million acquiring H.C. Starck
On May 30, Masan High-Tech Materials (MHT, ticker: MSR) announced the acquisition of 100% of H.C. Starck Holding (HCS) to Mitsubishi Materials Corporation Group (MMC Group) for $134.5 million. The agreement includes a long-term off-take arrangement for APT and tungsten oxide.
Masan Group will retain ownership in Nyobolt, a UK company specializing in fast-charging battery solutions, and will benefit from potential profits when HCS's "black mass" recycling technology is commercialized. The proceeds from the sale will help reduce MHT's debt and lower Masan's net debt-to-EBITDA ratio to less than 3.5x. The company expects a one-time profit of $40 million and an increase in long-term net profit by $20-30 million.
Photo: FPT
10. AG&P LNG buys 49 per cent stake in Cai Mep LNG Terminal
Singapore-based Atlantic, Gulf and Pacific LNG (AG&P), a subsidiary of US investment and development firm Nebula Energy, has acquired a 49% stake in the Cai Mep LNG Terminal located in Ba Ria-Vung Tau province, Vietnam.
Developed by Hai Linh Company Limited, the terminal features three onshore LNG storage tanks totaling 220,000 m3 capacity and facilitates LNG reloads into smaller vessels. It connects to Vietnam's Phu My industrial zone, providing gas to power plants like Hai Linh's Hiep Phuoc Power Plant under construction.
AG&P aims to start terminal operations by Q3 2024, bolstering Vietnam's energy security and transition efforts.
11. Nexif Ratch takes over Minh Luong hydro plant in Lao Cai
On January 2, Nexif Ratch Energy Investments Pte. Ltd. (Nexif Ratch Energy) announced its successful acquisition of the Minh Luong run-of-river hydro power plant, a 30MW facility with peak hour storage located in Lao Cai province, northern Vietnam.
This acquisition bolsters Nexif Ratch Energy's portfolio in renewable energy, ensuring stable and recurring income through a long-term power purchase agreement. The plant, developed and constructed by Nam Tien Group, has been operational since April 2018. Electricity generated by the plant is purchased under a 20-year agreement by a subsidiary of Vietnam Electricity (EVN), a state-owned electricity company.
12. PYN Elite completes 12 per cent stake acquisition in DNSE
PYN Elite, an investment fund, has finalized its acquisition of a 12% stake in DNSE, a technology-based stock brokerage company in Vietnam. Regulatory clearance for the acquisition was received on January 26, marking the completion of the transaction originally agreed upon in November.
DNSE's recent public offering, which concluded on January 24, saw strong demand and full subscription. PYN Elite added DNSE shares to its portfolio at the initial public offering (IPO) price, contributing to a significant 1.8% increase in the fund's net asset value on the completion day.
13. JB Financial to take 8 per cent stake of motorbike transaction platform OKXE
On April 1, South Korea's JB Financial Group announced a partnership with OKXE, a Vietnam-based platform for used motorcycles. JB Financial Group and its affiliate JB Investment have agreed to acquire a combined 8% stake in OKXE.
OKXE, launched in Vietnam in 2020 by CEO Kim Woo-seok, transitioned used motorcycle transactions from offline to online. By the end of 2023, the platform had over 8 million users and partnered with around 2,000 dealers. As Vietnam's first e-commerce platform for online motorbike transactions utilizing AI technology and big data, OKXE has rapidly grown its user base and dealer partnerships.
JB Securities Vietnam, the brokerage arm of JB Financial, will collaborate with OKXE to expand its customer base through partnerships, promotions, and marketing events. Additionally, JB Financial plans to use the OKXE platform as a launchpad to enter the Vietnamese financial market, explore new business synergies in Vietnam, and consider future expansion opportunities as OKXE moves into Cambodia.
14. Vingroup sold all of its stake in SDI Trading Development and Investment JSC
On March 17, Vingroup's Board of Directors signed an agreement to sell all its charter capital in SDI, which owns over 99% of the charter capital of Sado Trading Commercial JSC, the largest shareholder of Vincom Retail.
The transaction is expected to be completed by the end of Q3. Following the completion, SDI, Sado, and Vincom Retail will no longer be subsidiaries of Vingroup.
This move allows Vingroup to focus all its resources on developing its core brands with high growth potential.
15. PetroVietnam Ca Mau Fertilizer acquires 100% stake of Korea - Vietnam Fertilizer
Petro Vietnam Ca Mau Fertilizer JSC (PVCFC, ticker: DCM) completed the acquisition of a 100% stake in Korea-Vietnam Fertiliser (KVF) on May 17. The Ho Chi Minh City Department of Planning and Investment has issued a new business registration certificate for the single-member limited liability company KVF.
Now wholly owned by DCM, KVF has a charter capital of approximately VND 2 trillion ($85.6 million) and is headquartered in Ca Mau city, Ca Mau province.
In early April, DCM signed an agreement with South Korea's Taekwang Group to transfer ownership of Han-Viet Fertiliser. This acquisition strategically enhances DCM's comprehensive nutrition solution portfolio for crops.
16. BaF Agriculture approved the 99.99% acquisition of CNC Thành Đạt
Specifically, BAF's Board of Directors resolution on January 18th approved the acquisition of up to 99.99% of the charter capital of Thành Đạt Gia Lai High-Tech Livestock Corporation (Thành Đạt Livestock). All decisions regarding negotiations, transaction details, contract signing, and documents have been assigned to Ms. Bùi Hương Giang, the CEO of BAF.
Thành Đạt Livestock was newly established in April 2022 with a charter capital of 80 billion VND, headquartered in Mang Yang district, Gia Lai, Vietnam. The company operates mainly in pig farming and pig breeding, which is also BAF's primary focus.
These developments highlight Vietnam's attractiveness as a vibrant market for mergers and acquisitions, driven by strategic investments across diverse sectors. As we look ahead, these initiatives are poised to reshape industries, foster innovation, and contribute to the country's economic growth.
Stay tuned for more updates on Vietnam's dynamic M&A landscape!
