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30% of FPT Retail sold to Dragon Capital and VinaCapital entities

Released at: 16:41, 11/08/2017

30% of FPT Retail sold to Dragon Capital and VinaCapital entities

Photo: FPT

Sale of 6 million shares wrapped up on August 11.

by Minh Tuyet

FPT completed selling 30 per cent of the FPT Digital Retail JSC (FPT Retail), or 6 million shares, to funds managed under or associated with Dragon Capital and VinaCapital on August 11.

FPT Retail is currently the second-largest retailer in Vietnam and has 438 stores nationwide. With revenue of $15,717 per sq m, it is the most effective retailer in the country, according to Euromonitor and Retail Asia Publishing.

Dragon Capital and VinaCapital are the largest foreign financial investors in Vietnam, having $2.1 billion and $1.8 billion of assets under management, respectively.

FPT Retail set a target for this year of 27.5 per cent and 40 per cent growth in revenue and pre-tax profit, respectively, from both same store sales growth and from new stores opening in areas where smartphone penetration is low. E-commerce and the omni-channel approach will also be used in delivering its business targets.

In the first six months of this year, FPT Retail recorded revenue of VND6.193 trillion ($272.49 million), up 31 per cent year-on-year, and pre-tax profit of VND141 billion ($6.2 million), up 44 per cent.

The compound annual growth rate (CAGR) in revenue and pre-tax profit are expected to be over 25 per cent and 35 per cent per annum, respectively, during the 2016-2019 period.

Mr. Andy Ho, Chief Investment Officer at VinaCapital and Managing Director of the VinaCapital Vietnam Opportunity Fund (VOF), said that the consumer sector is one its favorites and Vietnamese people have shown a huge appetite for mobile phones and accessories. “This transaction enables us to make a meaningful investment in a premier, unlisted company,” he said.

With a population of nearly 100 million people and annual retail revenue of $110 billion, Vietnam’s consumer market is among the most lucrative in the world, he added. The retail of mobile phones and other technology has delivered impressive growth in recent times. A relative newcomer to the market, FPT Retail has confirmed itself as a leading retailer, he went on.

“We value the professionalism of the management at FPT Retail, as well as FPT Corporation’s corporate governance and operations, which serve as a robust foundation for FPT Retail’s future success in Vietnam’s retail market,” he said.

Dragon Capital has $2.1 billion of assets under management and targets listed, to-be-listed, or enterprises undergoing equitization or conducting IPOs. It assists Vietnamese enterprises in continuously improving their business administration and corporate governance, in order to add value to employees, investors, and the public.

VinaCapital has $1.8 billon of asset under management, focusing on investing in companies that serve Vietnamese consumers, use Vietnamese human resources, and are founded by Vietnamese citizens.

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