Vietnam's Vingroup is considering selling controlling stakes in its medical and education units, two sources with direct knowledge said, as the conglomerate exits non-core businesses and fortifies its balance sheet amid a profit slump.
is considering selling controlling stakes in its medical and education units, two sources with direct knowledge said, as the conglomerate exits non-core businesses and fortifies its balance sheet amid a profit slump.
The conglomerate has not appointed any advisers for the stake sales so far, but in its informal talks two buyers have shown interest in the two businesses, the sources said. The company did not respond to a request for comment. The sources declined to be named because they were not authorised to speak to the media.The plans are part of moves by Vingroup, which has a market value of $13 billion and posted half-year revenue of $1.7 billion, to stem losses in some of its units that have been compounded by the COVID-19 pandemic.
But the group sold Vinmart last year, and with the potential stake sales of Vinschool and Vinmec, Vingroup is quickly scaling back its ambitions.The expansion over the years, though, has pushed up Vingroup’s debt, and the losses at some of the ventures have squeezed its cash flow. Late last year, the group also abandoned moves to form a new unit from its sports, entertainment and hospitality business due to “profitability concerns” of some of the assets, a source with direct knowledge of the plans told Reuters.
Last year, Vinfast sold 19,400 cars and 50,000 e-scooters, according to company data. Its net loss ballooned to 6.6 trillion dong in the first half of 2020 from 1.6 trillion dong in the year-ago period.
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