Strategic investor of Thaco
Jardine Matheson invested in Thaco in 2008 and bought a large stake in the group in early 2019 at a valuation of more than $9 billion. At the end of 2023, Jardine continued to buy nearly VND9 trillion worth of Thaco bonds.
In a recent move, Thaco Chairman Tran Ba Duong mentioned selling shares in Thaco and its member companies to raise capital for the North-South high-speed railway project. Mr. Duong’s family will only hold 51% of the capital.
Previously, in October 2023, Thaco signed an agreement with Jardine Cycle & Carriage Limited (JC&C) - a subsidiary of Jardine Matheson, headquartered in Singapore - for JC&C to buy shares at a price 20 times higher than Thaco's consolidated profit in 2027.
So what is the potential and origin of the "giant" Jardine Matheson with 200 years of operation history?
British 'giant' ends East India Company's monopoly
The British Jardine Matheson Group was once "famous" throughout Asia, especially in China. Jardine Matheson was founded in 1832 by two Scots (a country of the United Kingdom), William Jardine and James Matheson, in Canton (now Guangzhou).
Jardine Matheson caused a stir by ending the monopoly of the East India Company in 1834. This was a famous private trading company, an empire that held the power to "cover the sky with one hand", operating mainly in India and the Asian region in the 17th to 19th centuries. Later, Jardine Matheson became the largest British trading company in Asia.
In 1844, Jardine Matheson established its headquarters in the new British colony of Hong Kong (China), and then continued to expand along the Chinese coast.
From trading tea, spices, and cotton for decades, Jardine Matheson has expanded its investments to many fields, including automobiles, real estate... in many Southeast Asian countries, including Vietnam.
Through its subsidiary Jardine Cycle & Carriage (JC&C), Jardine Matheson focuses on the automobile distribution sector. In Vietnam, Platinum Victory - a company under JC&C, has invested heavily in Thaco of billionaire Tran Ba Duong, REE Refrigeration Electrical Engineering (REE) and Vinamilk (VNM).
Jardine Matheson also invests heavily in Asian real estate, including Vietnam through Hong Kong Land.
Jardine Matheson’s formula for success is to invest in industry leaders, number 1 companies in their fields, and companies with a long history of operation. However, in the real estate sector, Jardine Matheson tends not to buy shares in large real estate corporations in the region. Jardine Matheson has also invested less in emerging corporations in the past 1-2 decades.
Investing in Thaco, REE, Vinamilk
In its hundred-year history, Jardine Matheson has focused on investing in leading enterprises in China and then in Southeast Asia. Jardine Matheson entered Vietnam quite early and only invested in a few large, long-standing enterprises in leading positions in a number of industries.
In Vietnam, through direct investment and through subsidiaries, including JC&C, Jardine Matheson owns a large number of shares in three leading enterprises: Thaco, Vinamilk and REE.
JC&C began investing in Vietnamese auto giant Thaco in 2008 with 20.5% and continued to buy additional shares issued to Thaco's strategic shareholders. JC&C increased its holding ratio in billionaire Tran Ba Duong's enterprise to 26.6% from 2019.
At the end of 2023, JC&C purchased about 350 million USD of Thaco's convertible bonds. These bonds mature in 2028, so JC&C's stake in Thaco will continue to increase.
Previously, in 2012, JC&C invested and held more than 10% in Refrigeration Electrical Engineering Corporation (REE) - chaired by Ms. Nguyen Thi Mai Thanh - through the Platinum Victory investment fund. JC&C then increased its ownership ratio in REE and recently exceeded the threshold of 35%.
By the end of November 2024, Ms. Nguyen Thi Mai Thanh will cease to hold the position of Chairwoman of REE Board of Directors and become General Director. She will be replaced by Mr. Alain Xavier Cany - representative of Platinum Victory Fund.
As of May 22, Platinum Victory held nearly 196 million REE shares, equivalent to nearly 41.6%. With over 35%, the Singaporean giant has the right to veto important decisions. At the current market price, the REE shares owned by JC&C are worth VND14.5 trillion as of June 3.
In addition, JC&C also spent a large amount of money to own nearly 221.9 million shares of Vinamilk (VNM), equivalent to more than 10.6%, currently worth about 12.2 trillion VND as of June 3.
Jardine Matheson's 2024 financial report shows that the group's after-tax profit dropped sharply from nearly $2.4 billion in 2023 to $555 million.
Thaco is a multi-industry corporation, operating in the fields of automobiles, agriculture , mechanics and supporting industries, construction investment, trade - services and logistics. This is the enterprise that proposed to invest in the North-South high-speed railway project with an investment capital of about 67 billion USD.
Recently, Thaco has been facing financial pressure due to a large investment in the agricultural sector from HAGL (HAG) of Mr. Doan Nguyen Duc (Bau Duc). The automobile sector is facing competition from a large number of cars from the electric car manufacturer VinFast (VFS) of billionaire Pham Nhat Vuong and Chinese cars.
In terms of real estate, Jardine Matheson is present through Hong Kong Land with many projects in prime locations such as Central Building in Hai Ba Trung (Hanoi), The Nassim (HCMC)... Jardine Matheson is also involved in many chain stores such as: Pizza Hut, Starbucks, KFC Vietnam...
Source: https://vietnamnet.vn/ga-khong-lo-200-nam-tuoi-rot-tien-vao-loat-dai-gia-viet-thaco-ree-vinamilk-2407500.html
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