Vietnam’s Vingroup rebuts Reuters report of plan to sell school, health units

Vietnam’s largest private firm Vingroup has rebutted a Reuters report that the multi-sector conglomerate was considering selling controlling stakes of its private hospital chain Vinmec and private school business Vinschool.

n the article published on Friday afternoon, Reuters reported that the conglomerate could look for buyers for Vinschool and Vinmec.

Though so far there have been no advisers appointed for the stake sales, two buyers are reported to have shown interest in the two businesses in its informal talks, Reuters said, citing unidentified sources.

“A third source aware of the matter said Vingroup has received preliminary interest, and the controlling stakes could fetch roughly $1.5 billion. The source said the interest was rejected”, Reuters wrote.

“It is also planning to raise as much as $1.1 billion in debt before the year-end for refinancing existing debt, one of the sources said.”

The sources declined to be identified because they were not authorized to speak to the media, Reuters explained.

In a statement later on the same afternoon, a Vingroup spokesperson said the company has no plans to sell stakes in Vinschool or Vinmec, which it said play “important roles in the Vingroup ecosystem.”

“We commit to develop Vinmec and VinSchool to bring much more better services here in Vietnam,” said the spokesman, who added that Vingroup was evaluating international bond markets.

Vingroup, founded by Vietnam’s richest man, billionaire Pham Nhat Vuong, is an omnipresent conglomerate in Vietnam.

It has a market value of $13 billion and posted a half-year revenue of $1.7 billion in 2020, according to Reuters. 

Vinschool runs 32 educational facilities and Vinmec operates seven hospitals and five clinics across Vietnam.

Tuoi Tre News with Reuters – September 12, 2020