VinaCapital becomes strategic shareholder of Viglacera

VinaCapital has become a major shareholder of Viglacera

In the September 14 transaction, five investment funds under VinaCapital management, namely VOF Investment Ltd., Asia Value Investment Ltd., Vietnam Investment Ltd., Vietnam Investment Property Holdings Ltd., and Vietnam Ventures Ltd., purchased a total of five million shares, raised VincaCapital’s ownership in Viglacera from 16.36 to roughly 21.36 million shares, making VinaCapital a strategic shareholder.

Since early September, the Vietnamese stock market witnessed a record surge in Viglacera’s stock price from VND18,300 ($0.81) per share to VND21,800 ($0.96).

Prior to the record purchase, several members of Viglacera’s management board went on a selling spree on the back of the price rise. Since September 18, Nguyen Minh Tuan, Viglacera’s deputy general director, sold one third of his 600,000 shares. In late August, he also sold another 200,000 shares along with fellow deputy general director Hoang Kim Bong, who sold 40,000 shares.

At the meeting on Viglacera’s evaluation of business results in July, the firm's consolidated pre-tax profit for the first half of 2017 reached roughly VND534 billion ($23.5 million), an increase of 136 per cent compared to the initial plan and 1.42 per cent compared to the same period last year. Total revenue, total business and production value also exceeded the initial plan for the first half.

Speaking about the latter half of the year at the meeting, Luyen Cong Minh, chairman of the management board, emphasised the stability of production, the enhancement of product quality and operational efficiency in order to reach the target of the consolidated profit of VND1.1 trillion ($48.4 million).

Viglacera’s latest investment project was a cooperation with foreign partner Davo C&M Co., Ltd. from South Korea in early 2017, investing in an electronic components plant in Phu Ha Industrial Park (IP). The companies signed a contract to rent a 20,000-square-metre land at Phu Ha IP in the northern province of Phu Tho.

Phu Ha IP, invested by Viglacera with a total construction cost of VND1.73 trillion ($76.1 million), has also been a beacon for numerous investors in electronics, including Samsung’s satellite companies.

In the 2012-2017 period, Viglacera has penetrated foreign construction materials markets, including Algeria, Russia—the firm’s regular consumers—and Cuba, a prominent construction goods market with national investment in real estate and tourism infrastructure, several Latin American countries, Japan, and South Korea.

VinaCapital, is one of Vietnam’s leading investment management and real estate development enterprises with a diversified portfolio of $1.8 billion in funds under management, while Viglacera is a state-owned producer of construction ceramics and tiles with a solid standing in the real estate sector with numerous housing products. Thus, the fund’s investment in Vietnamese ceramics and tile manufacturers does not surprise investors.

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