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Foreign powerhouses poised for local M&A
Foreign institutions are hunting merger and acquisition opportunities in Vietnamese securities companies and banks.
Quan Duc Hoang, Alternative Investment Capital chairman, said there were Fortune 500’s Japanese funds seeking opportunities for merger and acquisitions in Vietnam.
“Through our networking, opportunities for them in banking and finance are more visible in Vietnam. There are 20 per cent of securities companies and 10 per cent of joint stock commercial banks looking for foreign merger and acquisition partners,” said Hoang.
“Investment funds from Japan are interesting in merger and acquisition companies in consumer production, banking and finance, soft infrastructure like education and health and agriculture production,” said Hoang.
Many securities companies have investment capital of less than VND100 billion ($6.25 million) and they are facing operational difficulties.
However, he said prices were still high and foreign funds want securities firms and banks to further understand their difficulties before they come for help. Lim Chor Ghee, partner of Vietvalues auditing and consulting company, said it was only a matter of time before funds swoop on Vietnam.
VNN
“It is surprising to me, there are quite a number of funds and private equity fund management companies looking at Vietnam as a good opportunity,” said Ghee. The funds were mainly from China, Taiwan, Singapore, Malaysia and Korea and had capital of $50-100 million and were not be distracted by negative foreign bank reports, he said.
“Many Vietnamese companies are willing to negotiate with foreign partners to be a joint venture today as bank loans have become expensive and this is a good time to invite foreign partners to come,” said Ghee.
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