Mega deal between SK Group and Vietnamese conglomerate
Energy-to-telecom conglomerate SK Group has announced to invest US$ 1 billion in Vietnam's leading conglomerate to expand its position in the Southeast Asian market.
SK Group stated that they have decided to buy a 6.1 percent stake in Vingroup, which will also resutl in strategic partnership between the two in various business opportunities in Vietnam, including infrastructure development and mergers and acquisitions.
Vingroup with its business portfolio ranging from real estate development to automobiles is Vietnam's largest privately run conglomerate in terms of market cap. Their first quarter performance was sales of 1.1 trillion won (US$925 million).
The mega deal is the latest in a series of overseas pushes by South Korea's third-largest conglomerate in recent years.
Last August, its five affiliates, including SK Holdings Co. and SK Innovation Co., established a joint entity named SK South East Asia Investment Pte. Ltd. in Vietnam to launch promising opportunities in the burgeoning Southeast Asian market.
SK Group also bought a 9.5 percent stake in Masan Group Corporation, Vietnam's second-largest privately run conglomerate, for $470 million.