Gemadept Corporation (code: GMD) has just announced completing the divestment of its 51 per cent stake in Hoa Sen-Gemadept Logistics and International Port Corporation.
|Gemadept will turn towards the Gemalink deep water port |
Gemadept finalised the sale of its 51 per cent stake in the company to an undisclosed South Korean buyer. The transaction’s value was also not disclosed, but it is estimated at over VND104 billion ($4.6 million).
According to its financial statement in the first quarter of 2018, Gemadept poured VND63.1 billion ($2.8 million) into Hoa Sen-Gemadept Port. Thanks to the transaction, GMD’s profit in the first quarter is over VND1.278 trillion ($56.3 million), twelve-times as much as in the same period last year.
At the 2017 annual general shareholders’ meeting, Gemadept’s representative said that the Korean buyer plans to turn it into a port for carriers transporting liquefied petroleum gas (cooking gas).
He also stated that the divestment is part of their restructuring plans. Gemadept would divest from several other projects and pick strategic shareholders to continue growing in the logistics industry.
In 2008, Gemadapt and Hoa Sen Group signed a deal to establish Hoa Sen-Gemadept Port, aimed to develop a logistics and port project in Ba Ria-Vung Tau province. Gemadept held 51 per cent of the shares, while the Hoa Sen Group held 45 per cent.
Gemadept is a Vietnamese company with an interest in ports, logistics, forestry, and real estate. The port it has just divested was one of six ports that it operates.
After divesting the project, Gemadept plans to channel investment into the Gemalink deep water port in the Cai Mep-Thi Vai area. Work on this port, which has a total area of 72ha, a 1,150m main berth, and a 370m feeder berth, has been suspended for many years due to the global economic downturn.