American global investment giant set for US$64 million profit on Vietnam’s Vinhomes share sale

, American global investment giant set for US$64 million profit on Vietnam’s Vinhomes share sale

Vietnamese developer recorded revenue of US$1.81 billion in first of year, up 82% year on year.

American global investment giant KKR expects its investment in Vietnam’s leading real estate developer Vinhomes to result in a return of about US$64 million by next month.

KKR-backed Viking Asia Holdings II fund is selling almost 32 million Vinhomes shares from August 19 to September 17, which will reduce its stake in the developer from 5.5% to 4.6%, according to the Ho Chi Minh City Stock Exchange.

Based on current prices, the sale is estimated to be worth more than 3.7 trillion dong (US$161.5 million), and the estimated profit for Viking Asia Holdings II, as of June 2020, equates to some US$64 million.

In June, a consortium led by KKR, and which included Singapore state investor Temasek Holdings, invested US$650 million into Vinhomes, the real estate firm of Vietnam’s largest conglomerate Vingroup.

The transaction saw more than 201.3 million Vinhomes shares bought for an average of 75,000 Vietnamese dong (US$3.23) per share. The current share price is approximately 118,000 dong, or US$5, based on current exchange rates, which are a little lower than those of last June.

In the first half of the year, Vinhomes recorded revenue of 41,712 billion dong (US$1.81 billion), up 82% year on year, mostly thanks to real estate transfers.

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By coincidence, during the time the KKR-backed fund registered for selling Vinhomes (VHM) shares, Vingroup registered to sell nearly 100.5 million VHM shares, or a 3% stake. The proceeds of the sales, says the private conglomerate, will be used to increase its operating capital and its investments in its subsidiaries.

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By Nguyen Tuong Thuy @ The Asset

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