Exclusive-Vietnam’s Vincom Retail in stake sale talks with strategic investors – sources

According to five sources, Vingroup, Vietnam’s top conglomerate, is in negotiations to sell a stake in its shopping mall arm to bring in strategic investors. The largest shopping mall operator in Vietnam, Vincom Retail, which is controlled almost 60% by Vingroup, has a market value of $2.8bn. Central Group, Thailand’s biggest retailer, and other companies are reportedly in discussions to buy a stake in Vincom Retail. Sources say that three of Vingroup’s sources have suggested that they are open to selling a majority stake. If a deal were to take place, it could mark one of the largest M&A transactions in Vietnam in recent years.

Vingroup and Central Group have both declined to comment. Vincom Retail owns 83 shopping malls in Vietnam, a country that grew by 8% last year, making it Asia’s fastest-growing economy. The company was spun off from Vingroup and listed on the local stock exchange in 2017. VinFast, Vingroup’s fledgling electric vehicle car maker, has been expanded in the U.S., pouring in billions of dollars as it races to develop its loss-making project. Reuters reported this month that Vingroup’s property arm Vinhomes is in talks to sell property assets worth roughly $1.5bn to Asian real estate giant CapitaLand Group.

($1 = 23,485.0000 dong)