PAN to issue shares for M&A dealsBy Minh Tam Manufacturing activity at a subsidiary of PAN Group - PHOTO: PAN HCMC – Agricultural firm PAN Group JSC will sell some 15 million shares to a Japanese partner and will use the proceeds to conduct mergers and acquisitions (M&As) and raise its stakes in member companies. The scheme of share issuance was approved by PAN Group’s board of directors on September 7. Accordingly, PAN Group will offer 14,861,818 shares priced at VND55,000 each to Sojitz Corporation, the group’s strategic investor. The share sale is expected to generate some VND817 billion, which the group intends to use for capital contribution to member firms and M&A projects in the agriculture, nutritious material and packaged food and beverage sectors. The share issuance is slated for the fourth quarter of this year. Nguyen Duy Hung, chairman of PAN Group, earlier said at the group’s 2018 general meeting on April 21 that M&As would … [Read more...] about PAN to issue shares for M&A deals
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More M&A deals in healthcare sector expected
Vietnam has witnessed so many M&A deals in the healthcare sector this year, worth trillions of dong. Nha Khoa My, an international network of dental clinics which has been operating in Vietnam for 15 years, has just merged with Sun Medical Center (SMC). According to Vietnam Dental Tourism JSC, about 100,000 foreign travelers come to Vietnam each year to use dental care services, bringing revenue of US$150 million. Foreigners prefer Vietnam because dental technology in Vietnam is not inferior to that in developed countries, while the cost is 50% less. Prior to that, the healthcare sector was stirred up by the news that Polish Adamed Group spent US$50 million to acquire 70% of Davipharm shares. This is the biggest Polish investment affair in Vietnam so far, made in anticipation of the Vietnam-EU FTA, expected to take effect in 2019. Before the M&A, Davipharm mostly made generic products at its factory in Binh Duong province. After the deal, its capitalization value … [Read more...] about More M&A deals in healthcare sector expected
Foreign investors seek M&A deals in renewables
The Vietnamese government is currently reviewing an FiT rate of 7.8 cents per kWh for wind power Photo: Le Toan Mergers and acquisitions (M&A) in renewable energy are on an upward trajectory, as much of it is driven by traditional energy businesses scrambling to acquire new capabilities and institutional investors looking for stable and predictable returns. In addition, the landscape is diversifying, with new players like wind and solar power companies throwing their hats in the ring. Last week, Thailand’s B. Grimm Power Plc. announced its completion of a $35.2 million acquisition of a solar photovoltaic (PV) power project in Vietnam, as part of an expansion of its portfolio of overseas renewable power projects. B. Grimm, through subsidiary B. Grimm Renewable Power 2 Ltd., acquired an 80-per-cent stake in Phu Yen TTP JSC, which invested and developed a 257 megawatt (MW) PV project in the south-central province of Phu Yen. The remaining part of the project will be developed … [Read more...] about Foreign investors seek M&A deals in renewables
Cross border M&A deals cause unsolved tax issues
Cross-border M&A deals cause unsolved tax issues, illustration photo Cross-border headaches In recent years, along with the general rise in mergers and acquisitions (M&A) deals in Vietnam, overseas companies have been conducting more high-profile deals among themselves for assets based in the country. And, most of the time, tax confusion and controversies follow these transactions. The latest example is ConocoPhillips and Perenco, which do not want to pay nearly $180 million in taxes levied on the sale of its assets in Vietnam to Perenco six years ago. ConocoPhillips argued it cannot be taxed because the transaction was conducted between two foreign entities “with no taxable presence in Vietnam”. This case harkens back to the controversial Uber and Grab merger in April this year. Singapore-based Grab, the buyer of Uber’s Southeast Asian business, said it would not be responsible for taxes owed by Uber to the Ho Chi Minh City government, which reached $2.3 … [Read more...] about Cross border M&A deals cause unsolved tax issues
M&A deals boost business transparency
M&A facilitates technology transfer and connectivity between domestic and foreign businesses Great attractiveness Ministry of Planning and Investment data showed that from 2008-2017, 4,000 M&A deals totaling US$48.8 billion in value were successfully implemented in Vietnam, with M&A value hitting US$10.2 billion in 2017 alone, up 175 percent from 2016 and the highest value reached so far. The biggest deal in 2017 was that of the ThaiBev Group (Thailand). Through its subsidiary, Vietnam Beverage, the group acquired 51 percent of shares of the Saigon Beer-Alcohol-Beverage Joint Stock Corporation (SABECO) for US$5 billion. M&A deals totaled US$3.35 billion in the first half of 2018, up 39 percent from the same period in 2017, and are expected to reach US$6.5 billion in 2018. Michael DC Choi, Deputy Director General of the Korea Trade-Investment Promotion Agency (KOTRA), said that in the first five months of 2018, almost 300 Korean businesses came to seek business … [Read more...] about M&A deals boost business transparency