mai hien

There will be a “Big” M&A in Logistics

Thursday, 08 June 2017 01:42

At present, the room for the company's foreign block is 49% due to 49% of its cargo handling, inland transportation and trucking business being limited to foreign ownership.

Tae Kwang Industrial Co. Ltd, a South Korean textile and petroleum chemical company, has expressed its desire to buy a large stake in Gemadept Logistics (GMD). Although Gemadept has not officially announced this information but the stock market is still hot on this story, GMD stock has risen nearly 60% since the beginning of the year.

Tae Kwang Industry Co. Ltd has been operating in Vietnam for more than 23 years. Tae Kwang Vina Industrial (100% owned by Tae Kwang Industry Co.) is the second largest footwear company in Vietnam. If the deal is successful, GMD will receive the entire transfer of logistics requirements of Tae Kwang.

At present, the room for GMD's foreign block is 49% due to its 49% foreign owned, domestic and trucking business as a foreign owned business.

GMD owns a series of seaports with the following ownership ratios: Nam Hai Port (GMD owns 99.98%) contributes about 10% of net sales and 19% of gross profit in 2016; Nam Hai Dinh Vu Port (84.66%) contributes about 19% of net sales and 34% of gross profit in 2016; Phuoc Long Port (100%) contributes about 12% of net sales and 9% of gross profit in 2016; Nam Dinh Vu Port (60%) is under construction and will be operational from 2018; Dung Quat port (81.60%) contributes about 2% of net sales and 6% of gross profit in 2016.

At the last shareholders' meeting, shareholders approved the plan to divest in a number of subsidiaries. GMD expects to complete some of its investments and record high earnings this year. Detail:

Transfer 15% of the remaining capital of CJ Vietnam Co., Ltd (owned by Gemadept Tower) and recognized VND 100 billion of profit; Assignment of 51% stake in Hoa Sen Gemadept International Ports and Ports Joint Stock Company and a profit of VND100 billion. The company is owned by Hoa Sen Group - HSG (45% owned), Gemadept (51% owned), charter capital is 140 billion; 51% of the shares will be transferred to Gemadept Holding and Gemadept Holding. GMD said its partner is paying $ 125 million to buy a 50% stake in the two companies.

Other investments to be divested will take longer. Specifically: Transfers 51% -100% of GMD's shares in three rubber companies owned by GMD 100%:  Indochina Pearl JSC (Charter capital of 587 billion), Lotus Corporation (Chartered capital of VND790 billion) and  Pacific Pride JSC (chartered capital of VND92 billion); Assignment of 25% stake in Gemalink, chartered capital of VND2,000 billion, GMD owns 75% of shares.

Source: infonet