Vingroup has sold 41.5% shareholding in its retail unit, Vincom Retail, to local investors, according to the details from CGS International Securities (Thailand) (CGSI).
The transaction was made to local investors that have expertise in the local market but have no direct experience in shopping mall management, the securities company wrote in a note, with a total transaction value worth $1.6 billion for 99% stake in Sado Trading Commercial (SDT), which owns 41.5% stake in Vincom Retail (VNI: VRE).
This report has erased all speculation that Thailand’s conglomerate Central Group will buy part of the shareholding from Vingroup as per the report from Reuters since March last year.
CGSI added that this should remove the concerns in the market over whether the acquisition of Vincom Retail is bottomline-accretive or whether it will result in a capital call by CPN. The securities company believed that CPN will focus on its greenfield project in Vietnam, which is expected to announce more details in 2H24. Thus, CGSI maintained its “Add” recommendation on CPN with a target price at THB84.00 per share.
