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Shinhan Investment sets sights on Novaland

Released at: 16:33, 25/08/2017

Shinhan Investment sets sights on Novaland

Photo: Minh Duc

South Korean giant looking to pick up stake in one of Vietnam's largest real estate developers, according to Pulse by Meil Business News Korea.

by Linh San

South Korea’s Shinhan Investment Corp. is in talks to buy stakes worth a combined $203.8 million in the US biopharmaceutical company Intarcia Therapeutics Inc. and the Vietnamese property developer Novaland Group, according to Pulse by Meil Business News Korea.

Shinhan Investment has also joined hands with Vietnam’s leading asset management firm, VinaCapital, to form a $100 million private equity fund to acquire convertible preferred shares in Novaland Group, one of the country’s largest real estate developers. It plans to conduct a local study with South Korean institutional investors later this month before setting up the fund.

Novaland is currently Vietnam’s second-largest listed property developer with a market cap of $1.7 trillion. It boasts a 30 per cent market share in Ho Chi Minh City, having earned VND1.66 trillion ($7.3 million) net profit last year. In 2015, VinaCapital, through its Vietnam Opportunity Fund, invested $15 million in Novaland’s $47 million convertible share program. The fund manager also participated in its private placement last year, when it raised $120 million.

According to the news from South Korea, Shinhan Investment has also assembled a consortium with Tyrus Holdings and Starset Investment to acquire 1.66 million preferred shares, or 1.84 per cent, in Intarcia Therapeutics for about $100 million. It is currently pooling funds from major institutional investors and plans to form the Shinhan Global Healthcare Investment Equity Investment Trust 2 next month.

Created on August 1, 2002, when Shinhan Securities and Good Morning Securities were merged. Shinhan Investment Corp. now provides a variety of advanced professional financial services. On the back of its strong and stable corporate governance and financial structure, it is fast emerging as a leader in South Korea’s securities industry by embracing advanced management techniques as well. The company boasts strong capabilities in in-depth research, global and derivatives products sales, stable trading, and management. It is also equipped with a sophisticated risk management system and quality human resources.

Founded in 2003, VinaCapital is a leading investment and asset management firm headquartered in Vietnam, with a diversified portfolio of $1.8 billion in assets under management. The firm manages three closed-ended funds that trade on the London Stock Exchange: VinaCapital Vietnam Opportunity Fund Limited, which trades on the Main Market, as well as VinaLand Limited and Vietnam Infrastructure Limited, which trade on AIM.

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