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FPT to sell stakes in retail, distribution businesses at year-end
Chi Thinh
Friday,  Mar 25, 2016,20:39 (GMT+7)

FPT to sell stakes in retail, distribution businesses at year-end

Chi Thinh

By Chi Thinh - The Saigon Times Daily

A customer looks at a catalogue of products at a store of FPT Shop in HCMC. FPT Corporation plans to sell stakes in its retail and distribution businesses to investors at the end of this year - PHOTO: THANH HOA

HCMC - FPT Corporation plans to sell stakes in its retail and distribution businesses at the end of this year, a deputy general director of FPT said.

Nguyen The Phuong said the corporation’s retail and distribution businesses are performing well. However, it will reduce ownership in the two businesses in line with a strategy announced by FPT chairman Truong Gia Binh at the 2015 general meeting.

The corporation told the Daily that it is working with consulting companies to conduct corporate value assessments of FPT Retail and FPT Trading, and will look for investors to sell stakes in these businesses.

FPT signed a consulting contract with a consortium grouping Vietnam’s Viet Capital Securities Company and Japan’s Nomura Securities Company.

According to FPT, reducing ownership in the businesses will help the firm focus more on its core business-information technology and telecommunications segments to further bank on opportunities in this sector.

In addition, the share sales will support FPT to cooperate with investors with strong financial capability and corporate governance to boost the development of the retail and distribution sectors, which have drawn much attention of foreign enterprises in recent times.  

Nguyen Bach Diep, general director of FPT Retail, said that FPT plans to strengthen its retail business, including FPT Shop and F.Studio by FPT store chains. In 2015, FPT Retail was FPT’s member company that posted the highest growth rate and contributed much to the corporation’s revenue and profit.

FPT Retail earned over VND7.8 trillion (US$348.1 million) in revenue last year, making up 19.6% of FPT’s total.

Ngo Quoc Bao, director of the business development center at FPT Shop, said FPT Shop will sell its shares to investors to raise funds for its network expansion. He stressed that the corporation has no plan to sell its entire retail business.   

Earlier, Japan’s Nikkei Asian Review reported that FPT wants to sell its retail and distribution businesses to concentrate on the information technology-telecommunications segment. It quoted Maybank Kim Eng Securities Company as saying that deals to sell FPT’s retail and distribution businesses are valued at VND2.3-2.7 trillion (US$103-121 million).

Meanwhile, a news site reported FPT Shop seems to lose in the competition with retail chain The Gioi Di Dong and that FPT Shop should be sold to other investors soon. 

However, FPT Shop affirmed its expansion strategy, targeting 50 new FPT Shop stores in 2016 to earn revenue of VND10 trillion. 

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