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|Singaporean investment fund divesting from Vinasun|
GIC Private Limited (formerly known as Government of Singapore Investment Corporation), a sovereign wealth fund established by the Singaporean government, has just announced to have fully divested Vietnam Sun Corporation (Vinasun, code: VNS), according to the Ho Chi Minh City Stock Exchange (HSX).
Accordingly, 5.4 million VNS shares (equivalent to an 8 per cent stake) have been transacted on HSX with the total value of VND80 billion ($3.5 million) on May 25.
GIC poured around VND200 billion ($8.8 million) into Vinasun in August 2014, equalling VND45,000 per share. Thus, GIC divested at roughly 40 per cent of the purchasing price, losing approximately VND120 billion ($5.3 million).
This move has made as the business results of the taxi firm have turned into the red and its stock fell sharply. Although Vinasun’s leaders confirmed to have passed the hardest period since establishment, the corporation still approved lower business targets for the fourth consecutive year.
In 2018, Vinasun targets VND2.16 trillion ($95.2 million) in revenue, down VND1.07 trillion ($47 million) compared to the actual revenue from last year. Net revenue from taxi services and franchising is expected at VND2 trillion ($88 million), and the remaining revenue will come from the liquidation of assets.
The sharply reduced targets in the business plan are due to the competition with ride-hailing services, in light of which Vinasun also forecast after-tax profit to halve against last year, falling to VND95 billion ($4.2 million), the lowest over the last nine years.
Vinasun confirmed that the major task in 2018 will be to maintain its market share and stay in operation in the face of “unfair” competitive pressure. The company will expand its fleet by at least 700 cars additionally, develop an electronic payment application, and diversify its business co-operation model, such as promoting franchising.
Last year, Vinasun earned VND2.937 trillion ($130 million) in net revenue from sales and services. The revenue structure has changed significantly as passenger transport has reduced sharply, while franchising rose.
As of the end of 2017, the number of Vinasun employees was 7,117, reducing by 10,000 over the beginning of the year. This number has decreased by 120 in the first quarter of 2018.