The winners of Vietnam M&A Forum 2017

Vietnam M&A Forum 2017 has announced 2016-2017’s top mergers and acquisitions deals at the Gala Dinner at Ho Chi Minh City's Gem Center.

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The winners were chosen from a pool of prominent transactions nominated for their accomplishments in the Vietnamese market.

Le Trong Minh, editor-in-chief of VIR and head of the Organising Board, said that the awards aim to provide the business community with a database and experiences from companies, investors, and consultants who have obtained good results during the year.

26 deals and companies were chosen from nearly 100 nominations by Vietnam M&A Forum 2017’s panel of independent judges, to be then divided into different categories: The Best M&A Deals, Firms with The Best M&A Strategy, and The Best M&A Advisory Firms.

“Notably, 2017 will mark the first time that Vietnam Investment Review and the Organising Board of Vietnam M&A Forum 2017 honour businesses with The Best M&A Information Disclosure,” he said, adding that transparency has contributed remarkably to the success of M&A deals, as well as provided accurate information to the public and investors.

According to the Organising Board, the total value of The Best M&A Deals for 2016-2017 was estimated at $2.67 billion, accounting for 46 per cent of the total value garnered during the past year. The average value of the Best M&A Deals was $95 million. These exemplary deals give an insight into the development trends of the Vietnamese M&A market this year.

The evaluation is expected to help companies become more active in their M&A strategies, while advisory firms will come up with further diverse support to equitisation activities in particular and M&A activities in general.

THE BEST M&A DEALS IN VIETNAM 2016-2017

The Best Merger Deal: Thanh Thanh Cong Tay Ninh and Bien Hoa Sugar

The deal between Thanh Thanh Cong Tay Ninh and Bien Hoa Sugar is the biggest deal of the year, valued at $217 million. The merger company is now a major corporate in the sugar industry with a huge competitive edge. This deal is a perfect example of Thanh Thanh Cong Tay Ninh’s M&A strategy.

The Best Acquisition Deal: Siam Cement City (SCC) and Lafarge Holcim 

SCC is the second largest cement group in Thailand. SCC has spent $524 million buying 65 per cent of LafargeHolcim Vietnam, showcasing its strong interest in the Vietnamese cement market. After the transaction, Holcim Vietnam was re-branded as Insee Cement. 

Real Estate Transaction of the Year: EXS Capital and ACA Investment and SonKim Land 

In the beginning of May 2017, SonKim Land Corporation has successfully raised $100 million from EXS Capital Limited and ACA Investments Pte., Ltd. ACA Investments is a leading Japanese fund manager based in Singapore with strong track record of investments across the Asia-Pacific. This is ACA’s fifth investment in Vietnam

Investment and Private Equity Deal of the Year:  Fraser & Neave Ltd. (F&N) and Vinamilk and SCIC

In mid of December 2016, F&N spent $500 million on purchasing nearly 80 million shares of Vinamilk, equivalent to 5.4 per cent of the dairy firm’s stakes. After the auction, F&N increased its holdings in Vinamilk to 16.35 per cent and became the second largest stakeholder, following SCIC with 39.33 per cent. 

Investment and Private Equity Deal of the Year:  KKR and Masan

Masan Group announced on April 21, 2017 that leading global investment firm KKR has completed its $250-million investment in Masan Group and its branded meat platform Masan Nutri-Science.

KKR’s investment is comprised of a $100-million purchase of secondary shares in Masan Group from PENM Partners, an independent Danish private equity company, and a $150-million primary investment in Masan Nutri-Science for a 7.5 per cent stake. 

The IPO of the Year: Vietjet Air 

In December 2016, Vietjet completed an IPO with advice from major financial consultants like BNP Paribas, Deutsche Bank, JP Morgan, and Viet Capital. 

VietJet has raised about $200 million at the IPO, with a market capitalisation between $1.08 and $1.4 billion. After the IPO, Vietjet is listed on the HOSE.

The Best Companies with M&A strategies:

SCG: Continued implementing M&A activities in Vietnam in 2016 with outstanding transactions in the cement and petroleum fields.

Kido Group: Implemented an active M&A strategy in 2016-2017, continuously increasing its majority ownership at Vocarimex and organised the successful IPO of Kido Foods.

CJ Group: Strengthened M&A activities in Vietnam, focusing on foodstuff with the two major deals of Minh Dat and Cau Tre.

Companies with The Best M&A Information Disclosure:

Vietjet: The firm with the best information disclosure practices with an IR strategy, including road shows and successful announcement, together with the success of its IPO and listing on HOSE.

Kido Foods: Successful IR and information announcement strategy with a successful IPO.

SCIC and Vinamilk: Transparent information disclosure and successful organisation of the auction of SCIC-held stakes in Vinamilk, with the value of $500 million.

Masan Group: Exemplary announcement of the deal between KKR and Masan.

SonKim Land: Exemplary announcement of the deal between EXS Capital and SonKim Land.

Aviva: Transparent announcement of the deal in which Aviva acquired stakes from Vietinbank at AvivaViettinbank.

Commonwealth Bank: Active announcement of the deal in which VIB acquired the Commonwealth Bank branch in Ho Chi Minh City. The bank was particularly communicative towards customers and partners about the deal.

The Best M&A Legal Consultancy Firm: Baker&McKenzie

Baker McKenzie is the largest international and the most experienced legal firm in Vietnam. The company has been listed among the country’s leading law firms. Baker&McKenzie has been providing comprehensive consultancy on all trading deals for firms, solving every case with a wide range of experience of the market, which it has achieved during its more than 20 years of operations in Vietnam.

The Best M&A Consultant Securities Company: Viet Capital Securities

Viet Capital Securities Joint Stock Company (VCSC), established in 2007, is one of the fastest growing securities companies in Vietnam in its way to become the best investment bank and a leading broker. In the investment banking sector, VCSC has conducted many equitisation consultancies and helped restructuring businesses, mobilise capital, and conduct unprecedented M&A deals on the Vietnamese stock market.

By Thanh Van