Vingroup divests from Vincom Retail

March 19, 2024 | 10:47

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Vingroup is to sell its entire stake in SDI Trading Development and Investment JSC, indirectly selling shares and retaining an 18.8 per cent stake in Vincom Retail.

On March 17, Vingroup's Board of Directors signed an agreement to sell all of its charter capital in SDI, the entity owning over 99 per cent of the charter capital of Sado Trading Commercial JSC, Vincom Retail's largest shareholder.

The transaction is expected to be completed before the end of Q3. After completion, SDI, Sado, and Vincom Retail will no longer be subsidiaries of Vingroup.

According to Nguyen Viet Quang, vice chairman of the board and CEO of Vingroup, the conglomerate aims to concentrate all resources to develop its core brands with high growth potential.

"We will devote all our efforts, especially financial resources, to create breakthrough developments in the next phase," Quang said. "Furthermore, there will be no changes in Vincom Retail's organisational structure, management, or operations. Vingroup will sign a management contract with Vincom Retail, under which the conglomerate will take charge of the operations of shopping centres, ensuring the rights of tenants and stall owners."

The former subsidiary of Vingroup currently manages 83 shopping centres in 44 localities. In 2024, Vincom Retail plans to open six more shopping centres, with a total retail floor area of approximately 160,000 square metres.

Vincom Retail is responsible for Vingroup's retail real estate segment. In 2023, the company recorded gross revenue and after-tax profit of a little over $407 million and almost $184 million, respectively, showing an increase of 33 per cent and 59 per cent on-year.

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