FPT Retail and FPT Trading to be put on the market before the end of the year.
Vietnamese software giant FPT plans to sell parts of its profitable retail and distribution units this year to focus on its core business, according to the company’s website.
Viet Capital Securities and the Japanese-owned securities company Nomura have been engaged as consultants, Deputy CEO Nguyen The Phuong said.
The business performance of FPT’s retail and distribution units has been very good. By selling FPT Retail and FPT Trading the group will be able to focus more on IT and telecoms services, which have major opportunities, Mr. Phuong said.
FPT currently owns 84.27 per cent of FPT Retail and 100 per cent of FPT Trading.
The move will help the company find suitable investors with the financial capacity and experience to help expand the businesses, he said.
FPT Retail reported a 335 per cent jump in annual net profit in 2015, opening 252 stores after four years of operations.
As the group’s fastest growing subsidiary, FPT Retail accounted for 19.6 per cent of its revenue last year. Figures from the company showed the subsidiary posted revenues of more than VND7.83 trillion ($346.76 million) last year, up 148 per cent from 2014.
FPT Retail expects to post revenues of VND10 trillion ($442.57 million) this year.
FPT’s Board of Directors has set a goal this year of making the technology and distribution segment the key engine of the group’s growth.
It has also planned to further invest in telecommunications infrastructure and continue its R&D activities. Total revenue from telecoms, distribution and retail is expected to grow by over 20 per cent this year.
According to FPT Chairman Truong Gia Binh, the shareholders meeting last year agreed that the target of reducing its ownership in the retail and distribution segments was aimed at helping FPT further increase investment in its core business, including information technology and telecoms, to take advantage of the available opportunities.
The move will help FPT seek eligible investors with strong financials, experience, and international-standard governance, to accelerate the development of the units.