ice18-mergers & acquisitions news

8/14/2019 ICE18-Mergers & Acquisitions NEWS

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UCCESS PROMOTION COMPANY VALUE ENHANCEMENTietnam M&A News-Letter Copyright 2008 ICEEnterprise Trading and International Investment Connection Issued weekly for domesticnd foreign investors, enterprise owners and corporations. Please contact ICEs editors of M & A News to contribute ideas or place orders thisews-Letter via e-mail. All right reserved. Tel:+84-43-6227724 Email:[email protected] Website:www.vni-connection.com

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International Investment Connection and Enterprises Trading., JSC Weekly issued by ICE M&A via email and website

&

Vietnam

wWw.ice.com.vn & wWw.ma-vietnam.com

Weekly issued to about 82.000 emails of investors, managers, and investment organizations & groups in Vietnam or overs

olunme ICE-18, Tuesday November 18th, 2008

CE the M & A and project investment connection is the source of useful information for domestic oreign investors, enterprise owners and corporations. M & A News issued weekly by ICE will provnformation of buying and selling enterprises in all business fields as well as investment opportunitiesprojects throughout Vietnam. In addition, ICE Vietnam M & A News will help foreign investors a

enterprise owners to update new investment policies and new information of the M&A market in Vietnam

Main parts:

Part 1: M&A Investment OpportunitiesPart 2: Global M&A marketPart 3: Vietnam and M&A Tendency-Cash-rich firms buying small rivals sustainsM&A-study

M&A-66: Selling a hotel in Ha Tinh Province

Location Thien Cam, Cam Xuyen, Ha Tinh province

Business fields Hotel, restaurant

Legal status Sufficient and clear

Enterprise status Running

Financial status Turnover in June and July/2008 are 500 millionVND.

The strong points

and the advantages

We have a famous brand name and prestigious

with the providers, customers.

Transference form Whole transference

Transference price 15 billions

CEs Comment

PART 1: M & A INVESTMENT OPPORTUNITIES


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M&A AND INTERNATIONAL INVESTMENT CONNECTION

UCCESS PROMOTION COMPANY VALUE ENHANCEMENTietnam M&A News-Letter Copyright 2008 ICE Enterprise Trading and International Investment Connection Issued weekly for domestic

nd foreign investors, enterprise owners and corporations. Please contact ICEs editors of M&A News to contribute ideas or place orders this News-etter via e-mail. All right reserved. Tel:+84-43-6227724 Email:[email protected] Website:www.vni-connection.com

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M&A- 67: Selling a company operating in finance and fund manager in Ha Noi

Location Hanoi

Operation types Joint stock company

Business field Financial, Management Funds

Legal status Business license issued on November 2006, with 2 skills investment mandate

and management fund.

Charter capital: 30 billion VND

Shareholder structure: 59% import-export company, 7% Commercial Joint -Stock Bank, 34% remaining shares belong to natural person

Enterprise status Good running, have no subsidiary companies and fund members.

Staff number: 9 people

Staff number have practicing certificate: 5 people

The amount received mandate : 70 billion VND

Financial Status Good and clear

The strong points and the

advantages

- With the high skilled staff.

- Investment entrusting 1000 billion VND

Transference Form Transferring 75%

Transference price Negotiable

CEs Comment


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UCCESS PROMOTION COMPANY VALUE ENHANCEMENTietnam M&A News-Letter Copyright 2008 ICE Enterprise Trading and International Investment Connection Issued weekly for domestic

nd foreign investors, enterprise owners and corporations. Please contact ICEs editors of M&A News to contribute ideas or place orders this News-etter via e-mail. All right reserved. Tel:+84-43-6227724 Email:[email protected] Website:www.vni-connection.com

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M&A- 68: Selling a company operating in tourism in Hanoi.

Location Hanoi

Business fields International travel, transporting deliver, business real-estate

Legal status Good

Financial status Clear, no tax debt

The strong points and the

advantages

Operating in group

After 3 operating years, it considers to be a prestigious enterprise in

market. Many costumers knew us as a professional enterprise.

Transference form Whole transference

Transference price NegotiableICEs Comment


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SUCCESS PROMOTION COMPANY VALUE ENHANCEMENTVietnam M&A News-Letter Copyright 2008 ICE Enterprise Trading and International Investment Connection Issued weekly for domestic

and foreign investors, enterprise owners and corporations. Please contact ICEs editors of M&A News to contribute ideas or place orders this News-Letter via e-mail. All right reserved. Tel:+84-43-6227724 Email:[email protected] Website:www.vni-connection.com

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OJECT INVESTMENT OPPTUNITIES

M&A- 69: Calling for investment in or transferring Motorbike assembling and spare partmanufacturing plant

Location Hung Yen Province

Business fields Manufacturing and assembling automobiles and motorbike spare parts

Total investment 35,000,000,000 VND

Available legal documents of

the project

The target of registration with provincial people`s committee, the target

could be changed as market`s demand.

Project land status Land attaching red book with 35 years of renting. (2004-2039)

Planning indicators of the

project

- Area: 23089 m2- Density:

+ Store: 11.125m2

+ The rest: local road, sub-work (WC, canteen, parking house)

- Floors: 02 ( the total: 03 store with 4725 m2 area , 3200m2,3200m2.

Current status of the project 03 stores completed. Local road and sub-work finished. Installed and bu

transformer station of with 250KVA to serve manufacturing.

Economic indicators of theproject

N/A

Key strong points of theproject

Completed infrastructure construction, ready to install equipment and

conduct business.

Co-operation forms Whole transference

Value of Investmentinvitation

28,000,000,000 VND (Twenty eight billion dongs)

ICEs Comment


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M&A- 70: Calling for investment in or transferring Molding center & automobile- motorbikeindustrial complex

Location Long An Province

Business fields - Mold design and manufacturing - Spare part manufacturing Machinemanufacturing and assembly.

- Infrastructure construction of industrial complexes and residentialareas.

Total investment 1000 billion VND

Available legal documentsof the project

Approval by Long An Provincial Peoples Committee

Project land status Agricultural land will be turned into industrial and residential land.Land lease period: 50 years

Planning indicators of theproject

- Area: 318.5 ha- Construction density: 60%- Storey height:- Land use coefficient:- Construction purposes: Factories Residential areas, etc.

Current status of theproject

Completed purchase of a land area of nearly 100 ha

Economic indicators of theproject

Cost of capital: 17.6 %NPV: 630.103.255.462>0IRR: 29.5%

Key strong points of theproject

- Near Ho Chi Minh City, by Vam Co river and branches of Vam Co river- In the new industrial development area of Duc Hoa District.- Mechanical projects, especially the professional automobile motorbikeindustry will attract strongly both domestic and foreign investment.

Co-operation forms Joint-venture or Financing

Value of Investmentinvitation

Transference of 40% shares: 100 billion VNDCapital loan: 500 billion VND

ICEs Comment


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Genworth in deal to buybank, seeks TARP money

Life and mortgage insurer Genworth Financial Inc said on Sundaapplied for capital under a U.S. government program, after reachindeal to buy a bank, bringing it under federal regulation.

With the move, Genworth joins Hartford Financial Services Group Inc, a la

property and life insurer, in seeking to change its regulatory status in ordeparticipate in the Treasury Department's $700 billion Troubled Asset Relief Prog(TARP).Genworth declined to say what amount of capital it was seeking.Hartford on Friday announced it was buying a small savings and loan, bringing line with a federal financial regulation requirement, and thereby making it eligiblraise up to $3.4 billion from TARP.Genworth said on Sunday it had reached an agreement in principle to InterBank fsb of Maple Grove, Minnesota and filed a savings and loan holcompany application with the Office of Thrift Supervision, a federal regulator.InterBank is a community bank with about $1 billion in assets, according towebsite.

Richmond, Virginia-based Genworth has been badly battered by investment losand concerns that it would run short of capital. Its shares have fallen from $25at the beginning of the year, to as low as $1 last week.Similar concerns over investment losses and capital shortfalls have dogHartford, even after it last month reached an agreement with German insAllianz SE to inject $2.5 billion.Life insurers generally have suffered large investment losses, eating into calevels. Several in the sector have lobbied for access to TARP, because it could companies a way to boost capital at better-than-market rates.Earlier this month, Genworth reported a $258 million net loss for the third quaand its operating profit missed Wall Street expectations. It also suspended a s

buyback plan, withdrew a previous forecast for 2008 operating profit, and sawas exploring ways to bolster capital.The company was spun off by General Electric Co in 2004.

Novafora to buyTransmeta in all cashtransaction

Privately held semiconductor company Novafora Inc agreed to microchip designer Transmeta Corp in a cash transaction worth $25million.

The expected offer price of between $18.70 and $19.00 per share is at a 7 percto 8 percent premium to Transmeta's closing price on November 17.The deal is expected to close in the first quarter of 2009.Transmeta also entered into an agreement under which Advanced Micro Dev

will transfer 700,000 of Transmeta's preferred stock to the company.Piper Jaffray & Co. advised Transmeta while GCA Savvian advised Novafora ondeal.Separately, Transmeta posted a higher third-quarter profit on high revenue groRevenue for the quarter jumped to $25.3 million from $44,000 a year ago.Shares of Transmeta closed up 4.91 percent at $17.52 Monday on Nasdaq.

PART 2: GLOBAL MARKET M&A


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Top Global M&A Deals

Target Acquiror Value ($M

Altana AG SKion GmbH 1,180.3

Centennial Communications Corp

AT&T Inc

920.1China Times Group Tsai Family 621.1

Enea S.A. Vattenfall AB 595.0

Q Med AB Ivytan AB 498.5

Greater Gabbard Offshore Winds Ltd Npower Renewables Ltd 495.0

Yunnan Salt & Chemical Industry Co Ltd Yunnan Yuntianhua Co Ltd 403.5

Lafarge SA Cement and Aggregates & Concrete activities Sacci SpA 366.6

Yunnan Malong Industry Group Co Ltd Yunnan Yuntianhua Co Ltd 363.8

NVS Installation AB Imtech NV 297.1

Top Industries: Global M&A

Industry Deals Value ($

Grand Total 8,453 549,221.0

Financials 1,547 238,798.0

Industrials 1,871 74,284.9

Energy 373 48,476.6

Basic Materials 847 33,607.7

Utilities 256 31,487.0

Technology 900 30,834.5

Non-Cyclical Consumer Goods / Services 691 25,613.7

Healthcare 446 24,266.3

Telecommunications Services 171 20,995.7

( source: Reut


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Bloomberg: Vietnamseconomy steady in financial

crisis

Despite the ongoing financialcrisis, the Vietnamese economyremains steady

(Source: VNA)

Vietnam is among the economies that have recorded the higheconomic growth rates over the past 12 months, according to Pet

Grauer, Chairman of the USs financial information group, BloombeHe made this statement to his host, Vietnamese President NguyMinh Triet, in Hanoi on Nov. 13.

Grauer said that Vietnam is among 161 economies monitored by Bloombeand over the past 10 years, Bloomberg has kept a close watch on the countreconomic developments and has received support in this matter fromnumber of authorised Vietnamese agencies.

The chairman of the worlds leading financial news group said that Bloombewants to objectively cover the reality of the Vietnamese economy in orderattract the worlds attention to the countrys financial markets and to help t

Vietnamese people find out more about various financial tools and services.

He asserted that Vietnams economy was steady before the impact of financial crisis, as the country draws its strength from a young, intelligecreative and optimistic workforce that forms Vietnams backbone.

President Triet appreciated the reliability of Bloombergs regional and glofinancial coverage and reporting.

Regarding the impact of the global financial crisis on Vietnam , the Presidesaid the Vietnamese Government has adopted bold measures to curb inflat

and stabilize the macro economy. However, he added, Vietnam has liexperience in coping with financial turmoil, so it needs foreign consultancyhelp arrive at concrete solutions to tackle the crisis.

The President also stressed that Vietnam is determined to ensure that financial and monetary markets are transparent in order to gain the confidenof the worlds investment organizations.

PART 3: VIETNAM AND M&A TENDENCY- Cash-rich firms buying small rivals sustains M&A-study

Vietnam Economy


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Vietnam Investment Market

Czech auto manufacturer to openfactory in HCM City

Czech Republics Skoda Auto planned to open a factory in Ho Minh City, Trade and Industry Minister Martin Riman told HCM Cofficials on November 13.

Mr Riman expressed hope that with the opening of this new factVietnam will provide automobiles, spare parts, and repair services to ocountries.

At the meeting, HCM City Vice Mayor Nguyen Trung Tin, said that the Stowned Sai Gon Transportation Mechanical Corporation (Samco) will acSkoda Autos local partner.

Skoda Auto is the Czech Republics largest automobile manufacturer.

US Firms Bullish on VietnamsGrowth

US Ambassador to Vietnam MichaelMichalak (Photo: Thanh Nien)

( Source: SGGP)

Many US companies have expressed their confidence in Vietnaeconomic development and wish to do business in the country,

Ambassador to Vietnam Michael Michalak has said.

Talking with the international and local media in Ha Noi yesterday, he some US companies that are reconsidering their decision to invesVietnam are doing so because they are facing difficulties due to the gleconomic recession.

The ambassador was very positive about bilateral relationship with Vietand the United States.

Vietnam can be confident that the issues on which we work togethercontinue as priorities for the United States.

We continue to share many common goals and values and we undertakwork for the success of the bilateral relationship, he said.

The ambassador also reviewed the recent US presidential election, sathe fact that Barack Obama has become the 44th President of the UnStates is a groundbreaking and historic event for many reasons, includthe election of the first African-American to serve in the highest positiothe US government.


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Singaporean investors eyehealth care in Vietnam

( Sours: VNA)

Vietnam holds attractive potentials in health services for Singaporinvestors to explore and cooperate with domestic partners, scentre director of the International Enterprise Singapore , ChiWoan Shin.

The Vietnamese economy has constantly posted high growth and the miclass has required increasingly improved healthcare services, Chiong, whalso the commercial consul at Ho Chi Minh City-based Singapore ConsuGeneral, told the Thoi bao Kinh te Vietnam (Vietnam Economic TimThe fact created an opportunity for Vietnam s health sector to develop andinvestors from Singapore to tap potentials and cooperate, stressed the con

Chiong noted that Singaporean groups Parkway Health and Health way Medhad opened representative offices in Vietnam , while the Thomson Medic joining hands with the Protrade Company to build a pediatric-matehospital in southern Binh Duong province.

Can Tho city seeks wide-Ranging investments

The Mekong delta city of Can Tho authorities signed 11memorandums of understanding with economic groups and investon the development of industries, post and telecommunication, stplant construction, hotel building and hi-tech industrial zones.

The signing took place at an investment promotion conference held on Nov

by the municipal authorities in the hope of luring around 6 billion USDdeveloping various industries in the locality.

Can Tho has offered investors 29 projects involving hi-tech agricultural zoelectricity industry, electronics, biotechnology application, waste treatmindustrial zone infrastructure, handicraft village-ecotourism, vocational trainshipbuilding, seaports, hospitals, urban complex, and re-settlement arThe conference attracted the participation of more than 150 representativelocal and foreign economic groups and individual investors.

Located around 169 km from Ho Chi Minh City , Can Tho is the biggest cit

the Mekong delta, which is regarded as the rice basket of Vietnam . It isMekong deltas centre of economics, culture, science and technolBoasting a large river port and several industrial parks and potentialstourism, the city is expecting larger foreign investment to explore its untappotential.


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VIETNAM AND M & A TENDENCY

More regulation needed formergers market

The merger and acquisitions(M&A) market recently saw theSwitzerland-Viet Nam cementjoint venture company HolcimVietnam finalize a contract to

buy a cement factory belongingto COTEC Group, a domesticconstruction and buildingmaterials firm.

COTEC Group general director DaoDuc Nghia announced Holcim would

pay almost US$50 million for itsaffiliate COTEC Cement.

Earlier this year, Swiss ReinsuranceCo. bought a 25 per cent stake inVietnam National Reinsurance Co

(VinaRe) for US$81.9 million, whileMorgan Stanley acquired a 48.33percent stake in Huong VietSecurities for an undisclosed sum,Franklin Templeton Investments

acquired a 49 per cent stake inVietcombank Fund Management Co,and confectioner Lotte announcedits 30 percent stake in Bien HoaConfectionery Company (Bibica).

It is estimated that in the first sixmonths of the year, 48 deals wortha total of US$347 million werecompleted, perhaps a reflection ofthe global economic crisis. Incomparison, last year, 113 deals

worth US$1.8 billion were struck.

Still, experts in the M&A sector arecalling for appropriate regulations.

Starting next year, foreigncompanies will be eligible to bothexport their products to Viet Namand distribute them via their own

outlets. They, however, will only beallowed to open one distributionfacility. So what happens in the case

when a foreign firm acquires adomestic one that has a multi-outletnetwork? Bibica now has a 20,000retail shop system nationwide.

Under corporate laws in Viet Nam,companies with a market share of30 to 50 per cent are required toreport to the Vietnam Competition Administration Department (VCAD)before the merger. Dang Duong Anhfrom the law firm Vilaf Hong Duc

noted it would cost a company afortune to assess its market sharesto see whether it would becompulsory to report to VCAD ornot. Moreover, such an assessmentwould be difficult due to theunavailability of an effectivedatabase of information on localbusinesses.

The Vietnamese legal system has

yet to clearly define whether amerger and acquisition by anoverseas company is a direct orindirect investment. Currently suchactivities involving listed companiesare managed by the State SecuritiesCommission. If, however, theyinvolve foreign direct investment,then the Ministry of Planning andInvestment takes over.

Listing plans

Despite the falling indices at boththe HCM Stock Exchange (HOSE)and the Hanoi Securities TradingCenter, many companies are stillmoving ahead with their listingplans. Local media have even noteda wave of listing when authoritiesdisclosed 50 companies planned on

listing by years end. A numbethem have already gotten the from authorities. Others yet

applying to climb on board the sexchange, or are prepaprocedures to do so. The SaPaper Joint Stock Company andmachine installation Lilama 3 among them.

The Saigon Paper Joint SCompany could not delay its planlight of recent market troubles ahad to realise its liscommitments to shareholders,

chairman Cao Tien Vi.

Today HOSE is scheduled to recthe PetroVietnam FinaCorporation (PVFC). With chartered capital of VND5 trilliois set to be the leader of HObourse. PVFC general director TQuoc Truong also could not deladebut, adding that listing is a mto provide liquidity. Last Fr

HOSE alone saw two firms joinbourse, the steel pipe manufactHuu Lien A Chau and pharmaceuticals firm.

Though the latter part of last wsaw the VN Index increase, current state of the marespecially the demand-supply wgap perspective, is a cause concern among many investors.

Truong, however, assured that 12 per cent of PVFCs 500 mishares would be eligible for tradHolders of the remaining 88 cent, Petro Vietnam at 78 per and Morgan Stanley at 10 per chave committed to keep the shin their pockets for three years Viet Nams stock market is


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considered small, with only 300companies listed at the exchanges inHa Noi and HCM City, new listingswill provide greater choices forinvestors, and improve liquidity.

Apartment management

Residential property has become abig issue recently, especiallymanagement fees charged bydevelopers on apartment ownersacross the country. Affectedbuildings include The Manor in HaNoi and Screc, My Vinh and TheBotanic Towers in HCM City. WhenMy Vinhs developers doubled theirmonthly fee to US$40, owners

refused to pay. Residents at TheBotanic Towers were not happywhen management fees increased toUS$2 per square meter, up to

VND500,000 (US$30) per unit, lastSeptember.

In comparison, the monthly fee of amid-range apartment in Beijing isonly US$0.50-0.90 per square

metre, and US$1.30-2 for a high-endone. The figures go up to US$3.45-4.15 and US$4.84-6.23 respectivelyin Hong Kong. For luxury flats in HaNoi, the fees are US$0.75-0.80 andUS$0.50-0.80, respectively,according to property servicescompany CBRE.

CBRE held a seminar in HCM Citylast Friday on residential propertymanagement to introduce models

from Thailand, Singapore, NewZealand and the US. According toCBRE general director MarcTownsend, developers might offer

inaccurate fee levels to apartmbuyers before project completand increase fees once residmove in. Meanwhile, realistic facalso contribute to the fee increaTownsend cited common pract

elsewhere that separate functions of property developmand management. Many develoin Viet Nam retain tmanagement position after buildare complete. "After finishingproject developers overseas continue with their new oleaving the management toprofessional third party," he said.

( Source: V

Ericsson to Take over HTMobile

( Source: VNA)

Ericsson claims it will take over the operations of HT Mobile when network finishes switching from CDMA (Code Division Mult

Access) technology to GSM (Global System for MCommunication) one.

The telecom firm, based in Sweden, announced the plan at a celebrarecently held in Ha Noi of its 15th year in Vietnam.

The company previously signed a US$450 contract with HT Mobile for network change.

HT Mobile, a joint venture between Ha Noi Telecom and HutchTelecommunication, in March this year was licensed to invest in changing fexisting CDMA to GSM technology.

The switch is expected to be completed early next year with HT Moretaining 80% of existing telecom equipment and facilities such transmission lines and switchboards for re-use after changing to the Gnetwork.

Officially coming to Vietnam in 1993, Ericsson has already been involved number of telecom projects in Vietnam such as with VNPT to deliver and inEXE International gateways to Vietnam Telecom International (VTI) /VNPT.


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Cash-rich firms buying small rivals sustains M&A-study

Cash-rich companies that do not depend on bank financing will continue to buy up smaller rivahelping to sustain M&A activity over the next six months, according to a study released oThursday.

M&A activity will also come from companies who are forced to trim down operations due to the economdownturn or private equity firms selling companies as they breach debt covenants or get hit by a worsening globeconomy, M&A advisors said."One market that has not gone down is big companies buying smaller ones. They have the funds to do dealssaid David Bernard of Thomson Reuters, which conducted a study with M&A advisory organization IMAP amomiddle-market M&A boutiques.Almost half of the M&A firms participating in the survey expected M&A activity to decrease moderately in the nesix months, the Thomson Reuters/IMAP study found.Big companies such as Morgan Stanley and the big four accountancy firms like KPMG would likely suffer mosaid Axel Fuhri Snethlage, co-founder of Dutch M&A boutique Fuhri Snethlage & Joosten Flohil.The credit crisis and economic downturn made the M&A market a "buyers market" as multiples had gone dow

good companies could always be sold for a premium, and strategic buyers, such as multinationals, were instrong position to finance deals, according to the study.The multi-billion deals done by private equity firms before the credit crisis are not expected to come back soon."That market has dried up. It's totally dead," Fuhri Snethlage said.Most deals are expected in the financial and energy and power sectors, according to the study, conducted September."If the results were obtained a few weeks later they would be a bit more negative," said Bernard, citing the mSeptember meltdown of Lehman Brothers and ensuing market turmoil.Private equity deals such as the takeover of Dutch waste management company Van Gansewinkel or retaiHEMA were examples of highly leveraged deals that might come under pressure due to the credit crisis aeconomic slowdown, said Fuhri Snethlage."Especially deals for companies with cyclical operations are at risk," he said.

( ICE: Collectio

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