South Korean conglomerate SK Group plans to acquire a $1 billion stake in Vietnam’s largest private conglomerate Vingroup. SK plans to make the investment as early as next month, it said. Vingroup recently sought its shareholders’ vote on a plan to raise at least VND25 trillion ($1.08 billion) through a private placement to five foreign investors.
It plans to sell the shares at a minimum price of VND100,000 ($4.32) and stipulate a lockup period of one year, during which time the shares cannot be resold by the buyers.
It plans to use VND10 trillion ($432.34 million) of the proceeds to restructure its debts, VND6 trillion ($259.41 million) to invest in its auto company VinFast, technology firm VinTech and smartphone maker Vinsmart.
Vingroup is Vietnam’s largest listed company by market capitalization and is worth VND377 trillion ($16.23 billion).
Last September SK Group acquired a 9.5 percent stake in Vietnam’s diversified business Masan Group for $470 million.