11 Sep Singapore fund leads $500 million investment in Vingroup
A consortium led by Singapore sovereign wealth fund GIC signed an agreement to invest $500 million in a retail unit of private conglomerate Vingroup.
It would get a minority stake in VCM Services and Trading Development JSC (VCM), a subsidiary of Vingroup engaged primarily in consumer retail in Vietnam, GIC said in a statement on its website on Monday.
While the amount of stake has not been disclosed, GIC said Vingroup would remain the controlling shareholder after the transaction.
“As a long-term investor, GIC is confident in the growth outlook for disposable incomes and household consumption in Vietnam,” the statement said.
VCM operates the VinMart+ and VinMart chains. There are more than 108 VinMart supermarkets and some 1,700 VinMart+ convenience stores across the country.
Vingroup, which began as a real estate and retail company, has grown to become Vietnam’s largest listed company with a market cap of VND410.21 trillion ($17.71 billion) as of Tuesday.
It now has interests in education, healthcare, entertainment, retail, agriculture, and automobile manufacturing.
GIC was established in 1981 to manage Singapore’s foreign reserves. It now manages over $100 billion in assets in over 40 countries, according to its website.