Recently, Vietnam Container Corporation (Viconship, code: VSC) has continuously promoted M&A activities (mergers and acquisitions) in the context that the enterprise is implementing a strategy of divesting capital from non-core areas to focus on expanding the scale of core business areas.
Viconship's recent moves show that the company is showing great ambition for the transportation and seaport market in the Northern region, and the company's latest target is Vinaship Shipping Joint Stock Company.
At the 2024 Extraordinary General Meeting of Shareholders (AGM) of Vinaship Shipping Joint Stock Company (Code: VNA), the company's shareholders approved the plan for Viconship to receive the transfer of 12.8 million VNA shares, equivalent to 37.55% of charter capital from existing shareholders of Vinaship without a public tender offer.
15 shareholders with a total ownership of nearly 12.8 million shares, equivalent to 37.55% of Vinaship's capital, will participate in the transfer. The largest transferor is Vietnam Joint Stock Commercial Bank for Industry and Trade Fund Management Company Limited (VietinBank Capital) with 5 million shares; 14 other shareholders are individuals with a total of 7.8 million Vinaship shares.
VNA shares closed on October 2 at VND26,000/share. At this price, Viconship needs to spend about VND332 billion to buy 37.55% of Vinaship's capital. After the deal is completed, Viconship will be the second largest shareholder at Vinaship, after Vietnam National Shipping Lines - JSC (VIMC - Code: MVN) holding 51% of the capital here.
In the second quarter, Viconship also completed the acquisition of 100% of capital at Nam Hai Dinh Vu Port, thereby becoming the largest seaport enterprise in Hai Phong port cluster with a total handling capacity of 2.6 million TEUs (an increase of 36% compared to 2022), accounting for 30% of the market share in the whole region.
Currently, the enterprise owns a series of ports in Hai Phong port cluster, of which the 3 main ports are Green Port (100% owned, 300,000 TEU), VIP Green Port (74% owned, 800,000 TEU), Nam Hai Dinh Vu Port (100% owned, 550,000 TEU).
In particular, Nam Hai Dinh Vu Port is located between VIMC Dinh Vu Port and VIP Green Port. Therefore, the acquisition of this port helps Vietnam Container to be “adjacent” to 03 ports with the largest capacity today, creating a seamless wharf system of up to 1,500m, significantly reducing the operating costs of the wharfs and being more flexible in receiving ships.
On the other hand, Viconship has divested all capital in a series of member units, namely Dinh Vu Petroleum Services Port Joint Stock Company (PTSC Dinh Vu), T.S Hanoi Container Line Company Limited and the Hyatt Place hotel project of nearly 2,000 square meters in the center of Hai Phong City.
This move shows that Viconship is focusing on the cluster of 3 strategic ports: VIMC Dinh Vu - Nam Hai Dinh Vu Port - VIP Green to create a "continental" block with VIP Green Port, which also belongs to Viconship and will bring many benefits to Viconship. With the area and length of the wharf doubled, outsourcing costs will be reduced and profit margins will be improved.
At the same time, these deals help strengthen the seaport - transportation ecosystem with a seamless wharf system and complete Viconship's growth picture.
