GELEX is one of 15 enterprises with typical M&A deals in 2024
Việt Nam•28/11/2024
Within the framework of the 16th Vietnam M&A Forum 2024, the Organizing Committee honored GELEX with the transfer of renewable energy projects to a subsidiary of Sembcorp Group.
The voting council highly appreciated the deal based on 4 criteria: Deal size, Deal nature, Deal significance and Deal effectiveness.
Representative of GELEX Group received the honor of Enterprise with typical M&A deals in 2023-2024.
GELEX was voted for its M&A deal in the renewable energy sector with Sembcorp, a leading corporation from Singapore.The deal took place in 2023, when GELEX signed an investment cooperation agreement with Sembcorp Industries. By 2024, the two sides had realized the relationship by Sembcorp Industries acquiring shares or capital contributions in operating energy projects belonging to GELEX Group. To date, ¾ of the projects have been transferred. Sembcorp Industries,part of Sembcorp - a leading provider of integrated energy and urban solutions headquartered in Singapore. Sembcorp, with Temasek Holding (Singapore Government's investment fund) holding 49% of its capital, has invested in many countries around the world. This enterprise is listed on the Singapore Stock Exchange and is a member of the Straits Times Index (STI) group - Top 30 largest listed companies on the Singapore Stock Exchange.A GELEX representative said: “This is not just a simple financial transaction. At this time, GELEX is only divesting part of its investment portfolio to find and select partners to accompany us in the next projects. We are looking forward to working with capable investors. Cooperating with Sembcorp will help GELEX maximize its potential, support each other to develop more strongly in the Vietnamese and international markets, and open up new opportunities in the future.”The transaction took place in the context of the global and Vietnamese economies gradually recovering and the M&A market is forecast to become more active after a period of stagnation.According to data from KPMG Vietnam, as of October, there were 174 transactions recorded, with a total announced value of approximately 2 billion USD. Although the number of transactions increased by about 21% compared to the same period last year, the total value decreased by 54%, showing a significant decline. The main reasons are the difficulties of the global economy, the high USD interest rate environment and investor reticence in the face of prolonged uncertainty. However, investors are still active, but prioritize strategic transactions, focusing on value, instead of speculative transactions.
(Source: Report of KPMG Vietnam).
The M&A market in Vietnam is becoming an attractive destination not only for international investors but also for domestic investors. Large enterprises are taking advantage of the opportunity to expand their networks and seek strategic partners.According to KPMG, the rate of M&A deals with the participation of domestic enterprises in 2024 will reach 40%, significantly higher than in previous years. This clearly reflects the maturity in strategic thinking of Vietnamese enterprises. M&A has become an important tool to help enterprises innovate technology, expand scale, develop products and increase competitiveness in the international market.This year, the 15 enterprises with typical M&A deals in 2024 include VPBank with the sale of 15% of shares to Sumitomo Mitsui Financial Group - SMBC (Japan); Sycamore Company under CapitaLand Group (Singapore) successfully acquired the Tan Thanh Binh Duong urban and housing project (in Binh Duong New City) from Becamex IDC; Thomson Medical Group (Singapore) acquired the entire Far East Medical Vietnam Company (FEMV), the owner of FV Hospital; Gamuda Land acquired a 3.7ha project in Thu Duc City (HCMC) from Tam Luc Joint Stock Company to develop the Eaton luxury apartment project; Southeast Asia Commercial Joint Stock Bank (SeABank) sold its Finance Company to AEON Financial Service Co., Ltd Japan; TASCO Company had a notable deal in which Mitsui & Co became a strategic shareholder of Tasco Auto - a member unit of TASCO...This is a positive signal for the economy, as domestic enterprises are increasingly proactive in seeking cooperation and merger opportunities, affirming the maturity and growing strength of the domestic enterprise sector.It is forecasted that in 2025, when the economy recovers, foreign investment flows accelerate into Vietnam, combined with the growth of domestic enterprises, M&A activities will also be more strongly activated.
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