Private Equity New Markets Germany III (PENM III Germany) raised VND447 billion (US$19.24 million) by offloading 10.9 million shares or 0.51% stake in Vietnam’s top steelmaker Hoa Phat Group, according to Ho Chi Minh Stock Exchange (HSX).
Illustrative photo.
|
PENM III initially planned to sell 20 million shares or 0.94% stake in Hoa Phat Group, for which the private equity company cited the low market price was the main reason for its unexpected result.
After the transaction, PENM III currently holds 49 million shares or 2.31% stake at the Vietnamese steel producer.
PENM III bought in shares of Hoa Phat Group last March with the price of VND20,000 (US$0.86) apiece.
Previously, Bao Viet Securities Company (BVSC) cut forecast for Hoa Phat Group`s after-tax profit by 10% to VND11.7 trillion (US$502.79 million) in 2019. However, the Vietnamese steelmaker’s profit growth can still reach 28% in 2019.
Hoa Phat Group's profit in the third quarter of 2018 is estimated at VND2.25 trillion (US$96.73 million), up 5% year-on-year.
In 2017, Hoa Phat Group's revenue reached VND46.8 trillion (US$2 billion) and its after-tax profit VND8 trillion (US$351.2 million), up 38% and 21% year-on-year, respectively.
