M&A NEWSLETTER
1. Vietnam's OnPoint acquires Thailand's CREA to secure foothold in e-commerce market
OnPoint, a Vietnam-based e-commerce enabler, announced on December 18 that it had acquired Thailand's CREA to solidify its e-commerce position in Southeast Asia.
Vietnam-based OnPoint has acquired Thailand's CREA to expand its reach in Southeast Asia’s e-commerce market. This partnership combines two leading companies, providing comprehensive solutions for over 250 global and regional brands. With more than 600 employees and advanced AI-driven tools, they aim to enhance digital commerce operations and customer engagement. Backed by SeaTown Private Capital, OnPoint emphasizes financial stability and scalability. The collaboration targets becoming the region's leading e-commerce enabler within five years, leveraging Southeast Asia’s booming e-commerce market, expected to hit $370 billion by 2030.
2. Masan High-Tech Materials exits from H.C. Starck
Masan High-Tech Materials announced the finalisation of the sale of H.C. Starck Holding GmbH in its entirety to Mitsubishi Materials Corporation (MMC) Group on December 18.
Masan High-Tech Materials (MHT) has sold its entire stake in H.C. Starck to Mitsubishi Materials Corporation to focus on high-growth areas and improve financial health. The deal includes a long-term supply agreement for tungsten products, ensuring stable revenue for MHT. The sale reduces MHT’s debt from $670 million to $490 million, enhancing Masan Group’s financial position. MHT retains potential gains from its investment in Nyobolt's fast-charging battery technology and black mass recycling innovation. This divestment aligns with MHT’s strategy to focus on shareholder value while remaining a leading low-cost tungsten producer.
3. SBI Holdings to acquire 35 percent of FPT Smart Cloud Japan
SBI Holdings, Japan's leading financial service group, announced the signing of an MoU with FPT Corporation on December 9 as part of a plan to invest up to 35 percent of shares of FPT Smart Cloud Japan Co., Ltd.
SBI Holdings, a leading Japanese financial services group, has signed a Memorandum of Understanding (MoU) with FPT Corporation to acquire up to 35% of FPT Smart Cloud Japan Co., Ltd. This strategic investment aims to enhance AI innovation in Japan, particularly in Generative AI through FPT's AI Factory. The deal is expected to be finalized by the end of January 2025. Leveraging thousands of NVIDIA Hopper GPUs and the latest NVIDIA AI Enterprise software, FPT's AI Factory offers services such as AI Infrastructure, AI Studio, and AI Inference to accelerate AI model development and deployment. This collaboration positions FPT Smart Cloud Japan to capitalize on the growing AI market in Japan, projected to reach $5.9 billion in 2024 with a growth rate exceeding 31%.
4. Kido convenes an Extraordinary General Meeting of Shareholders to seek approval for additional matters related to the sale of shares in Kido Foods.
The upcoming Extraordinary General Meeting of Shareholders (EGM) of Kido will cover various matters, notably seeking additional approval regarding the transaction for the sale of shares in Kido Foods.
Kido Group has scheduled an Extraordinary General Meeting (EGM) for January 24, 2025, to seek shareholder approval for the sale of its shares in Kido Foods. In 2023, Kido sold over 24% of its stake in Kido Foods for approximately VND 1,069 billion, valuing the company at around VND 4,450 billion. Kido Foods, known for its popular brands Merino and Celano, has been part of the frozen food sector since 2016. The EGM will also review the company's 2024 business performance and discuss matters related to the KIDO brand and its trademarks. In Q3 2024, Kido reported a net profit of VND 21 billion, a 74% decrease year-over-year, with a 13% decline in revenue over the first nine months of 2024.
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5. After nine divestments by the Singaporean investor, Vinasun Taxi (VNS) gains a new major shareholder.
With the purchase of more than 1.4 million shares, the Chairman of HIPT Group officially became a major shareholder at Vinasun (VNS).
Le Hai Doan, Chairman of HIPT Group, has acquired over 1.4 million shares, increasing his ownership to 6.01% and becoming a major shareholder. HIPT Group, established in 1994, is a prominent IT firm specializing in system integration, software development, and IT services. This strategic investment is anticipated to bring technological advancements to Vinasun amid increasing competition from ride-hailing services like Grab and Be. In Q3 2024, Vinasun reported a 21% year-over-year revenue decline to VND 246 billion, with after-tax profits dropping 36% to VND 20.9 billion. To adapt to market trends, Vinasun plans to introduce 700 Toyota Hybrid vehicles in 2024, investing approximately VND 630-650 billion.
6. Gelex becomes a major shareholder of Vietnam’s Seafood – Seaprodex
GELEX has increased its ownership in Seaprodex from 4.8% - 9.52%, equivalent to 11.89 million shares, offically becoming a major shareholder of the company.
GELEX Group has recently increased its stake in Vietnam Seafood Corporation (Seaprodex) by acquiring nearly 5.9 million SEA shares. This acquisition, completed on December 17, 2024, raises GELEX's ownership from 4.8% to 9.52%, officially making it a major shareholder in Seaprodex. The move highlights GELEX's growing interest in the seafood industry, aligning with its diversification strategy across various sectors. As a major shareholder, GELEX is expected to play a significant role in influencing Seaprodex’s future direction and operations. This development underscores the rising attention towards Vietnam's seafood industry, which has seen steady growth in both domestic and international markets.
7. Finnish Fund (Pun Elite Fund) continues to successfully acquire Haxaco’s shares
Immediately after taking the seat as a major shareholder at Haxaco, the Finnish fund continued to collect more than 1.2 million HAX shares, increasing its ownership ratio at the largest Mercedes-Benz distributor in the country to 6.81%.
Pyn Elite Fund, a Finnish investment fund, has increased its stake in Haxaco (Hang Xanh Auto Service JSC) by purchasing over 1.2 million HAX shares on December 11, 2024. This acquisition raises Pyn Elite Fund's ownership from 5.68% to 6.81%, solidifying its position as a major shareholder in Haxaco. Haxaco is the largest distributor of Mercedes-Benz vehicles in Vietnam and has recently expanded its operations to include the distribution of MG-branded vehicles. In the first nine months of 2024, Haxaco reported a 27% increase in net revenue to approximately 3,696 billion VND and a ninefold increase in pre-tax profit to 183 billion VND compared to the same period in 2023. This performance represents 91% of the company's annual profit target.
8. DRG (Dak Lak Rubber JSC) is still determined to divest capital from DRI
DRG continues to register to sell 18,186,700 DRI shares from December 19, 2024 to January 17, 2025.
Dak Lak Rubber Joint Stock Company (DRG) continues its plan to reduce its ownership in Dak Lak Rubber Investment Joint Stock Company (DRI). DRG aims to sell over 18.1 million shares from December 19, 2024, to January 17, 2025, lowering its stake from 60.84% to 36%. This would shift DRI's status from a subsidiary to an associated company. A previous attempt to sell these shares in November 2024 failed due to unfavorable market conditions. Earlier in 2024, DRG had reduced its ownership from 66.6% to 60.84% through a smaller sale. As of December 2024, DRI's share price remains below DRG's target price of 14,100 VND per share